After clamping down on bitcoin miners earlier this month, Iranian bank officials are making an about face and are backing an “indignized digital money” that will be mined under the permission of the Central Bank of Iran.
The Iranian cryptocurrency is backed by gold but its function is similar to foreign rivals,” said Shahab Javanmardi, an official with the Iran Chamber of Commerce, Industries, Mines and Agriculture, in an interview with MEHR
According to a report by the MEHR News Agency dated July 13, the cryptocurrency will be tied to precious metal
As Shahab Javanmardi said, the Iranian cryptocurrency is mined in accordance with the agreement of the CBI and by a consortium of Iranian private IT firms.
The Iranian cryptocurrency is backed by gold but its function is similar to foreign rivals,” he added.
“The domestically encrypted money is to ease optimal use of Iranian banks’ frozen resources,” he said.
Underlining lack of required regulations in cryptocurrency sector in Iran, the private sector official urged the government for regularization of bitcoin mining business in the country.
The announcement came just few days after a CBI official announced that all cryptocurrency-related activities are forbidden in Iran.