Link to original article:
https://www.aljazeera.com/news/2019/01/iran-inches-closer-un...
Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
31–40 of 50 posts
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#32The 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…
Not all cryptocurrencies add public record. Examples: ZCash, Grin.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#33If Iran was serious, then they would use Ethereum or Bitcoin. They would make an exchange in their country to get local currency in/out Ethereum. The exchange could allow local banks to transfer in/out (ACH-like) to the exchange to get in/out between Ethereum and their local currency. Then all cross-border controls are gone by Ethereum senders and receivers crossing borders.
The only reason not to is:
1) They don't want local currency holders expropriating their capital
2) It could result in their local currency having high inflation or even possible collapse down the road
But... if cross-border flow was really their goal, then they would use Ethereum.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#34For a sanctioned country to create its own crypto currency makes little sense. The west will just ban any use of that currency and they will be in the same boat as before except now they will have a bunch of useless digital tokens. If they want to be able to move money and the potential to purchase goods and services with it, they should use an existing, established crypto.
Using something such as Monero/Zcash (pick your flavor of the month) makes far more sense as there is already a widespread supply allowing them to optimally 'wash' their funds. They will likely not be able to convert their crypto currencies into dollars and use those dollars in any meaningful way but they could use the crypto currency to purchase needed goods and services and allow the vendors to worry about fiat conversion.
Creating an Iranian cryptocurrency for use anywhere outside of Iran is doa. I don't really understand the point of using it inside Iran either as they have fiat for that.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#35For a sanctioned country to create its own crypto currency makes little sense. The west will just ban any use of that currency and they will be in the same boat as before except now they will have a bunch of useless digital tokens. If they want to be able to move money and the potential to purchase goods and services with it, they should use an existing, established crypto. Using something such as Monero/Zcash (pick…
> For a sanctioned country to create its own crypto currency makes little sense. The west will just ban any use of that currency
Crypto advocates often make a big deal out of the idea that states cannot in practice effectively prevent or regulate use of crypto currency.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#36For a sanctioned country to create its own crypto currency makes little sense. The west will just ban any use of that currency and they will be in the same boat as before except now they will have a bunch of useless digital tokens. If they want to be able to move money and the potential to purchase goods and services with it, they should use an existing, established crypto. Using something such as Monero/Zcash (pick…
> For a sanctioned country to create its own crypto currency makes little sense. The west will just ban any use of that currency Crypto advocates often make a big deal out of the idea that states cannot in practice effectively prevent or regulate use of crypto currency.
This. You can't prevent the use of crypto because you can't attack any single point of failure.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#37Honestly, 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.
Wasn't Ripple/XRP designed for this exact purpose? Being a SWIFT replacement?
XRP doesn’t have any anonimity features, you can see who’s on the other end of the transaction and impose sanctions once they try to convert it back to fiat.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#38If Iran was serious, then they would use Ethereum or Bitcoin. They would make an exchange in their country to get local currency in/out Ethereum. The exchange could allow local banks to transfer in/out (ACH-like) to the exchange to get in/out between Ethereum and their local currency. Then all cross-border controls are gone by Ethereum senders and receivers crossing borders. The only reason not to is: 1) They don't w…
The only problem with this aproach is that the local exchange needs to do an initial purchase of Ethereum from foreign markets, which is a traceable transaction.
Once they’ve traced the original ETH all transactions flowing out of it can be blocked by the other exchanges.
Their options are to either use a privacy coin (Monero) or make the initial purchase underground and somehow hope it doesn’t get discovered.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#39Despite what the US government might think, the fact that such an article exists (reliably sourced or not) is absolutely a validation of the technology behind cryptocurrency.
Re: Iran to Launch State-Backed Cryptocurrency to Counter SWIFT and US Regulations
#40Earlier quoted context omitted.
> For a sanctioned country to create its own crypto currency makes little sense. The west will just ban any use of that currency Crypto advocates often make a big deal out of the idea that states cannot in practice effectively prevent or regulate use of crypto currency.
This. You can't prevent the use of crypto because you can't attack any single point of failure.
I see the scenario playing out like this. Majority of nations declare the new Iranian crypto illegal, thus anyone mining it is guilty of sanction violations. They then crack down on all people mining it. They should be able to locate the majority of those computers relatively quickly. Most countries would quickly follow suit as they don't want the US to accuse them of sanction violations. Then the only people mining and maintaining the block chain reside in Iran. The new crypto currency is effectively dead at that point.