Iran and Turkey recognize the innovation of digital currencies; both countries are looking to launch their coins – which will be issued by Central Banks. Venezuela has already started offering crude oil backed Petro coins.
Via a rough translation, Iran’s minister of information and communications technology – Mohammad Javad Azari Jahromi said, “In a meeting with the board of directors of Post Bank on digital currencies based on the blockchain, I … prescribed … measures to implement the country’s first cloud-based digital currency,”
Turk parliamentarians have also been trying to make a consensus for the potential launch of state-backed cryptocurrency called “Turkcoin.”
Iran and Venezuela are among those countries that have been facing strict sanctions from the United States and the United Nations. Both countries are facing a financial crisis, and they aren’t allowed to sell their products and services in international markets – the idea of raising and moving cash through digital currencies has been viewed as an attempt to evade sanctions.
Venezuela has raised almost $750 million through initial coin offerings (ICO) of Petro coin early this week, while the country is planning to expand the coin offering in the days to come.
Though the launch of coins from Central Banks enhanced trader’s confidence in the future of digital currencies; at least for the time being – the new phenomena has also raised several questions over cryptocurrencies that aren’t backed by assets such as oil, gold or U.S. Dollars.
Analysts and regulators had strongly criticized cryptocurrencies, amid lack of underlying value and the substantial price volatility.
With the authorization from Central Banks and backed by real cash assets, these coins would have the potential to outpace other cryptocurrencies that are launched by individuals and mined by private companies.
The price of Bitcoin (BTC), Ripple (XRP), and other virtual currencies plunged considerably since Venezuela has launched oil backed Petro coins on Tuesday. Bitcoin plummeted to $10,000 and Ripple price slashed below $0.90 before paring some losses on Friday.
The United States has publicized strong concerns over the launch of digital coins. U.S. senators said: “It is imperative that the U.S. Treasury Department is equipped with tools and enforcement mechanisms to combat the use of cryptocurrency to evade U.S. sanctions in general.”
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