The highest price of Bitcoin in the world is its price in Iran. A combination of high demand for currencies and economic sanctions and an improved regulatory environment has pushed the price of the leading digital currency into space.
But how far could it go up?
The fall of the Iranian riyal coincides with a new policy to stimulate the rise in the price of Bitcoin
The price of Bitcoin in Iran rose sharply on Wednesday after the government of President Hassan Rowhani agreed to plans to adopt the mining of Bitcoin - due to the decline of the local currency. As a result of the news, Bitcoin recorded a world record of $ 24,000 on Iran's EXIR to break its previous high of $ 20,000 as investors turned to digital currencies for a safe haven to escape the downward spiral of the local currency.
Iran embraces digital coin mining
TEHRAN (Reuters) - Iran announced on Tuesday it would officially begin exploration of Bitcoin and other digital currencies as a formal sector within three weeks. "The Iranian Central Bank, which works in the field of foreign exchange and monetary policy overseas, has prepared a policy framework for this sector," said Abulhasan Fairooz-Ebadi, secretary of Iran's Supreme Council for Cyberspace.
"The consolidation of the use of digital currencies could facilitate trade between Tehran and its partners, especially in the wake of renewed US sanctions," Fayrouz Abadi told IBENA, a specialized news agency in the banking and economic sector linked to the central bank. But the final policy of digital currency legislation has yet to be announced.
Iran's Bitcoin price broadly reflects the gap between the official exchange rate and the street price, a reflection of the inflationary pressures that are accumulating in economies under US sanctions. In Bitcoin, Bitcoin was trading at $ 24,000, an increase of 240% from the global average. According to EXIR, the price in the Islamic Republic has risen about 40% in the last three weeks, and the price has risen much faster than the global average. As the fall of the riyal along with changes in Bitcoin's policy, and some speculation, pushed up demand.
On the other hand, Iran, the world's third-largest oil producer, hopes to take advantage of digital currencies to compensate for the expected crisis caused by oil-producing dollars aimed at cutting oil sales in the country, which is the lifeblood of the country's economy.