Iran to Use Cryptocurrency to Bypass USD and Pay Allies, as Rial Set to Lose 57% Value by End of 2018
While bitcoin and other crypto currencies are experiencing significant loss in value compared to the previous all-time high, let's not forget how fiat currencies across the globe have had this issue for a very long time.
Iran is the next to fumble, as it's currently experiencing high inflation which will result in an expected 57% devaluation in the rial (Iranian money) by the end of 2018. This will result in holders of the Iranian rial losing more than half of their savings.
Source: pixabay, Public Domain, wikimedia
With hyperinflation currently at 132%, there is a big correction coming, just like what happened with bitcoin. The steep decline of the national currency is likely due to sanctions imposed by the US government.
The the past six months drop in the value of the rial is not as steep as taht of the bitcoin correction. True, bitcoin has fallen by 70% from the high of $19,500, but the king of crypto has a recovery looming on the horizon, as it's expected to bottom out near $5,000. But it doesn't have the issue of hyperinflation that's causing this devaluation.
When hyperinflation is involved, fiat currencies don't recover well, if at all. Bitcoin has ups and downs, but if you look at the extreme hyperinflation rate of Venezuela, it's at 30,000%. For now, the rial is still a store of value and medium of exchange, but the Venezuelan bolivar has lost that privilege. Allies and the very citizens of Venezuela have stopped using the Bolivar because of how worthless it is.
Many people are using crypto currencies like bitcoin and ether as an alternative to their failing national currency. Iran is thinking ahead, and has Artie expressed intent to plan for cryptocurrency use to transfer money among its allies. The head of Iran’s Parliamentary Commission of Economic Affairs [IPCEA], Mohammad Reza Pourebrahimi, said:
"[IPCEA has already] obliged the Central Bank of Iran to start developing proposals for the use of cryptocurrency. Over the past year or two, the use of cryptocurrency has become an important issue. This is one of the good ways to bypass the use of the dollar, as well as the replacement of the SWIFT system. They [Russia] share our opinion. We said that if we manage to promote this work, then we will be the first countries that use cryptocurrency in the exchange of goods"
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There you have it. Iran is apparently looking to bypass the US dollar by using cryptocurrency with at least one of its allies, Russia. If it works out, as it should, this can signal to other governments and their people that have their national currencies devalued, or under the strain of global financial forces, can escape the censorship of leading economies by moving into crypto.
The US is applying its censorship as a leading economy on Iran through its sanctions. The US has gone so far as to prevent Iran from transacting with financial institutions and entities outside of its own country. This control is the primary factor for the plummeting rial. Rather than seeing your whole currency devalued due to economic sanctions imposed by an economic bully, it might be better get into the cryptocurrency market despite it higher risk and volatility.
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Maybe this will benefit crypto in a positive way
Economic warfare by the US is the prelude to real warfare, if the economy isn't obliterated and causes civil unrest.
A fermenting pot for revolution.
.....or at least that's what 'they' think it is.
It's a decades old, always succesful process. Nothing new.
....I also think 'they' are in for a very rude awakening!
Times are changing faster than the dinosaur can move. ( I feel it, and I 'hope' it).
They can't do anything any different.
They are dinosaurs, after all.
I looks like there are too many things going on for them to keep the reigns and control this time ;)
I feel bad for Iran. I know most countries have their share of demons and misdeeds but one of the main reasons we are trying to destroy this country is because of their refusal to bow to the American demands. I think this is fantastic news, crypto and definitely established crypto like bitcoin and ethereum are a great way for them to gain their economic strength back to allow their people to breathe. I have several friends from Iran and they are just saddened that their lovely country is getting demolished.
Yeah, the power of money and control over others when they don't play your game.
It seems like Iran could accomplish more or less the same thing (and with more stable and predictable value) by using gold or other precious metals.
All fiat currencies have this problem. While the modern U.S. dollar has not experienced hyperinflation (yet), it has still lost ~95% of its value since 1913. Thanks Federal Reserve.
Yup, fiat is not so good, it always gets out of control.
The UNITED STATES INC is getting desperate to hold on. It's currency doesn't have any value, but people just don't comprehend the difference between money which has intrinsic value versus fiat currency which in this case is almost bankrupt. Not to much longer now.
Once blockchains start offering people real jobs besides "programmer" the rest of the world will wake up. Steem is a part of that, but then again, "blogger" isn't good enough either. We need to offer better jobs.
Yeah like store clerks and shipping receiving coordinators, Cashiers and so on. Retail is the next hill for the block chain. Than manufacturing and farming. lol
Every one of those jobs is getting automated out. Seriously those jobs are the worst no one wants those jobs. Maybe we can pay people to make sarcastic comments. Take this eight cents for seed money on that project.
The future of blockchain jobs revolves around entertainment and development. Steem is on the right track with the whole proof of brain idealism. It's a shame that so many people put more effort into convincing themselves that crypto is worthless play money rather than attempt to brainstorm valid use cases.
At worst crypto is a vessel for unregulated gambling and at best it revolutionizes the entire planet. Actual value falls somewhere in between.
I think that thinking those jobs will be automated out is not taking into account that when those jobs are done by machine the people will still need to eat. The fact of the matter is when the jobs are automated out it will separate the rich from the poor. So much so that the reality will be automation for the very rich and by hand for the very poor. For what reason will the very rich who own the automation share with the poor who do not own the automation. The answer is that they will not.
Thus it merely appears that automation will eliminate those jobs, but in reality they will still be needed.
Which is why new and better jobs need to be created... to get rid of all the worthless nothing jobs that simply exist to ease unemployment statistics. There's a reason you can't pump your own gas in Oregon and there's a reason why people think automatic checkouts are bad... and it's a dumb reason. These are unsustainable bandaid jobs.
Cryptocurrency gives a lot more leverage to those poor and downtrodden individuals that are being exploited by the rich. They now have the means to opt in to their own currency and economy and regulate it as they see fit.
Decentralization can be inefficient, but that inefficiency is being trumped by sheer greed, making it totally worth it to create new systems and cut out the greed monsters. It's a race to the bottom, and it's barely even begun.
Oh I agree with you on what needs to be done. However like everyone else when we start talking about what will happen, not being a prophet creates a bit of a problem.
The truth is only those jobs that must be done by living beings will have economic value. Sadly this denies the value of the living beings.
"There's a reason you can't pump your own gas in Oregon and there's a reason why people think automatic checkouts are bad... and it's a dumb reason"
Your futuristic vision must be way better than mine as I have not seen the evidence for people thinking automation is bad also being dumb. The truth here is that auto inclusion is not how the system is being built. Thus the fears are founded both on how it is being built and the record of those who are investing in it's building. Both facts kind of support the thinking that automation is bad.
Thinking that the owners of the automation are going to include everyone is naive and fly's in the face of the Historical record.
Replace "dumb" with "extremely inefficient and not ideal"
A blockchain gets created where all the profits of automation get distributed evenly as UBI. Problem solved. I'm not underestimating the amount of greed in the world. I'm fully aware of how badly automation can centralize wealth distribution.
However, at the end of the day, if the rich want the poor to keep working as slaves, the poor have to have something that the rich want in the first place (a tiny bit of money and/or the ability to work). If machines are doing everything what's the point of having poor slaves? Perhaps there are plans in the works to kill a few billion people off when they've outlived their usefulness? Who knows.
Have you seen the movie Kingsman? The logic tracks.
Iran, Venezuela and all those facing hyperinflation should consider major cryptos. If not as a major transaction alternative, then as a substitute. It, sure, will take the pressure off their fiat (for a while), me thinks...
Yeah, who knows hot it will work out in the end, but it's something to try :/
This is oman rial currency in the picture, not Iranian one :|
Thanks, I corrected it ;)
oh man... you replaced with Shah's old Toman currency? :( This is old currency, not Rial. Rial has Khomeini etc :(
UPVOTE! https://steemit.com/news/@bible.com/6h36cq
Yes, in my opinion not only one particular country, in my opinion everyone should adopt the Cryptocurrency Module because Fiat is manipulative and in all these manipulations only common people get effected and sometimes situation becomes so worsen where people have to strive hard to buy basic necessity.
And Cryptocurrency Module can make us free from the Cruel Banking system which in my opinion works for Elites and their policies and actions always reflects against of common people and we don't need control of Banking system.
And most important aspect is, through Cryptocurrencies communities can decide their own use case and they can use it as an medium of exchange for particular or set of services or product.
So, in my opinion we can make our future bright through the Crypto world and mass adoption is required and there are many forces which are speculating the Crypto Sphere but soon everything will be fine.
Thanks for sharing this post with us and wishing you an great day. Stay blessed. 🙂