Cryptocurrency Gains As Iranians Fear US Sanctions Will Hurt Rial Value

Investing, News, Regulation | May 10, 2018 By:

Iranians are fleeing to the safety of bitcoin in the wake of the US withdrawal from the nuclear arms treaty and the restoration of severe sanctions.

Reports indicate Iran’s citizens are using bitcoin and potentially other cryptocurrencies to get money out of the country and beat the deflation of the rial, the country’s fiat currency. When sanctions were last imposed, the rial lost 50 percent of its value, according to reports.

Forbes had a reported conversation with one Iranian living in North America, who said that citizens there are using the LocalBitcoins exchange to launder their rials. Although cryptocurrency trading is banned in Iran, citizens can use digital mixers to hide their addresses and activities.

Mohammad Reza Pourebrahimi, chairman of Iran’s economic commission, claims $2.5 billion has fled the country from crypto exchanges. Iran has its own local cryptocurrency, which was launched in May 2017 in anticipation of the end of the nuclear deal and restored sanctions.