Iranian Central Bank wants to back pot? Over 2.5 billion U.S. dollar outflows for the purchase of encrypted digital assets (development)

April 18, 2023

Iranian Central Bank wants to back pot? Over 2.5 billion U.S. dollar outflows for the purchase of encrypted digital assets (development)

The chairman of the Iranian parliament’s economic committee revealed that Iran has spent over US$2.5 billion in funds to purchase encrypted digital assets. This outflow of large sums of money was related to the earlier prohibition by the Central Bank of Iran of prohibiting local banks from trading Bitcoin-encrypted digital assets.

$2.5 billion outflow of funds

Mohammad Reza Pourebrahimi, chairman of the Iranian parliament’s economic committee, revealed last week:

"According to the available data, there are not many users of encrypted digital assets in Iran, and there have been over 2.5 billion U.S. dollar outflows for the purchase of digital assets."

The reason for the disclosure of relevant information is that because the Central Bank was concerned about the risk of money laundering and terrorist financing in encrypted digital assets earlier, the local banks and financial institutions were prohibited from handling the transactions of encrypted digital assets. This, however, is probably the main cause of capital outflows.

In an interview with the Isna newspaper, he said: "As of March this year, the Iranian people have transferred 30 billion U.S. dollars from the country. Because the Iranian people are unable to enter the international banking system, this shift can only be carried out through non-traditional means. Such as foreign exchange dealers or international tourists."

Iran's National Encrypted Digital Assets

Iranian Information and Communication Technology Minister Mohammad Javad Azari-Jahromi recently confirmed that an experimental, locally encrypted digital asset has been developed and a beta version is in preparation.

However, in an interview with Ibena.ir last week, Pourebrahimi, chairman of the Economic Commission, said: "No virtual country digital assets have been designed."

In spite of this, he explained that Iran's national encrypted digital assets can promote economic transactions and circumvent sanctions. He pointed out: “Digital digital assets are the future of the world economy. The state’s encrypted digital assets facilitate the promotion of a multilateral digital asset swap agreement between Iran and countries interested in cooperation with Iran, paving the way for it, but for now, Because Iran is sanctioned, they cannot achieve this goal for the time being."

He said: "The structure of encrypted digital assets should be applicable to economic activities and at the same time be recognized internationally and allow the world to accept encrypted digital assets."

Pourebrahimi believes that one of the advantages of encrypting digital assets is that they are not regulated by the U.S. regulatory authorities and can circumvent the sanctions to a certain extent. This corresponds to the statement made by Azari-Jahromi last week: "All encrypted digital assets have the ability to circumvent sanctions because they are not under the supervision of the U.S. financial regulator."

At the same time, US President Trump has withdrawn the Iranian nuclear agreement signed in 2015 and resumed the sanctions on Iran’s oil exports.

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