Are There Any Governments Wanting to Use Cryptocurrencies?

Even though cryptocurrencies had rebounded in 2019 and enthusiasm had grown again to record levels, there still reticence from the side of national governments to replace their traditional currencies with a digital one.

Despite countries like Sweden, where fiat is little used, and aside from a few countries that want to escape sanctions, there’s little interest to adopt a national cryptocurrency. Iran and Cuba are two of the nations currently exploring the crypto world, and that’s going to be the topic of today.

Iran and Its Gold Backed Token

July 13th was the day when the local news agency Mehr reported that Iran will unveil its first cryptocurrency issued with the permission of CBI (Central Bank of Iran). Shahab Javanmardi is the official who leaked the information and according to him, there will be a group of IT firms from Iran which will handle the task of committing computational power to mine the digital coin, in compliance with the agreement of the CBI.

Alt text: Iran national cryptocurrency

“The Iranian cryptocurrency is backed by gold but its function is similar to foreign rivals…the domestically encrypted money is to ease optimal use of Iranian banks’ frozen resources.”

Despite the media reports, there’s no actual step from the local government to implement such an ambitious project. Ironically, though, a similar story happened in July 2018, when the country was also reported to be preparing for the launch of its own cryptocurrency.

Cuba makes an important announcement on state-run TV

In a period when people try to trade Bitcoin price movements as well as other cryptos, the Cuban Communist government is quietly exploring launching its own cryptocurrency. As SBS-AAP reported at the beginning of last month, the government announced it could potentially venture into the crypto world, in order to provide a new mean for income boost for a quarter of the population as well as for the support of market reforms.

Same like Iran, Cuba is one of the countries squeezed US-imposed economic sanctions and a cryptocurrency could be one of the options to bypass them. There were also many reports that seem false, claiming that Cuba might use the Facebook Libra token, but that would imply the country entering in the global monetary system.

Sweden’s Riksbank launched a project to explore an e-krona cryptocurrency back in 2017, but it had not been completed yet. This could be the first country, integrated into the global financial system, that takes the crypto path, but so far, there’s no clear evidence that might happen soon.



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