Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

btcwires.com

Post reply on HN
Print view View original

11–20 of 50 posts

Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

#11

Post by acdha »

tyingq wrote: post #2

The US response should be interesting. Not sure how they could/would technically enforce sanctions. Edit: Yes, I understand the banking tie in. I was thinking more of mining, and trading other cryptocurrency (monero maybe) for "bit-rials".

They’ll use the same techniques they are now: monitoring and blocking cash flows, getting partners not to use it, etc. This is the same way that drug dealers get caught even if they try using a variety of currencies, collectibles, real estate, etc. — at some point you need real currency to spend and the in/out-flows are monitored.

All a cryptocurrency adds is a public record making that task easier and the hokum used to sell it may make the NSA’s job easier if people believe it’s anonymous. Setting up a separate one also means there’s less benign traffic to hide behind.

Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

#12

Post by notahacker »

jake_the_third wrote: post #6
tgraham wrote: post #4

Earlier quoted context omitted.

Via payment processors ... prevent people buying this currency / trading at exchanges that enable it?

Wouldn't people just mine the currency themselves and exchange it locally? As long as the currency's token is unique and scarce, people can use it to trade.

As long as the currency's token is unique and scarce and accepted as equivalent to cash by people that have goods to deliver. Many things are unique, scarce and entirely worthless.

If the purpose is to allow Iranians to circumvent restrictions on international trade, then you encounter the problem of not many people wanting to swap their goods or dollars for crypto-rial. (If the purpose is to allow people to make payments within the Iranian banking system in accordance with Iranian law, the crypto layer is redundant)

Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

#13

Post by acdha »

jake_the_third wrote: post #6
tgraham wrote: post #4

Earlier quoted context omitted.

Via payment processors ... prevent people buying this currency / trading at exchanges that enable it?

Wouldn't people just mine the currency themselves and exchange it locally? As long as the currency's token is unique and scarce, people can use it to trade.

Ask what incentive those people have? That involves taking on personal risk in many countries, it’s highly visible to the authorities, and unless you’re surrounded by people who need to use it you have no benefit from the activity.

Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

#15

Post by mihaifm »

Honestly, Iranian banks have a better chance of wiring money abroad if they use Monero, but obviously it's not a solution the government will accept, because well, no control.

If they decide to fork any existing cryptocurrency or create some kind of token, it's likely to be banned on exchanges. I don't see how they could pull this off.

Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

#18

Post by acdha »

mihaifm wrote: post #15

Honestly, Iranian banks have a better chance of wiring money abroad if they use Monero, but obviously it's not a solution the government will accept, because well, no control. If they decide to fork any existing cryptocurrency or create some kind of token, it's likely to be banned on exchanges. I don't see how they could pull this off.

The big problem for any existing system is volume: Iran has enough money that they’d dominate the real currency exchanges and once that happens the risks go up for everyone involved. Even the most ideologically committed cryptocurrency proponents are going to think twice about going to jail on behalf of a foreign power without compensation.

Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

#19

Post by rdl »

amiraliakbari wrote: post #10

This article seems to be just speculations without any reliable source. Using cryptocurrencies for any meaningful amount of money is impractical for sanctioned countries because of difficulties in exchange with fiat currencies. Currently the Iran government forces very restrictive policies on cryptocurrency use by people. Even if there is a CBDC project under development, a small project done as an experiment does no…

I can think of ways for them to essentially use crypto as a negotiable bond (high rates due to uncertainty about politics and stability, although Iran itself is a good long-term growth bet in ways other than politics). Issue the CBDC in a way which essentially promises appreciation, do cross-chain atomic swaps for other currencies for overseas purchasing.

Might not be more efficient than, say, shipping tankers full of oil to countries who don't do the sanctions, or other goods, but it's an option. I think if there were essentially a way to anonymously buy 30% interest rate Iranian bonds at a retail level for crypto, you'd see people do it. They could also go after the stablecoin market by earmarking oil/other commodities/physical USD/etc. as backing.

Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations

#20

Post by gcb0 »

amiraliakbari wrote: post #10

This article seems to be just speculations without any reliable source. Using cryptocurrencies for any meaningful amount of money is impractical for sanctioned countries because of difficulties in exchange with fiat currencies. Currently the Iran government forces very restrictive policies on cryptocurrency use by people. Even if there is a CBDC project under development, a small project done as an experiment does no…

this sounds like a textbook false flag "think of the children" action on public opinion.

enemy, or Grey zone neutral power, announce they will use something a state always wanted a reason to jump in but didn't really had a legal reason.

with this news, real or otherwise, every intelligence agencies will be allowed to monitor cryptocurrencies. and then "cooperate" with the irs or do whatever is their real intent.

Post reply on HN