The ban on foreign currency exchanges in Iran can contribute to the growth of popularity of bitcoin

It seems that the Iranian people are losing confidence in the local currency, the Rial, as it continues to depreciate. In response, the government of Iran is trying to prevent citizens to access foreign currency. Following the actions of the government can be expected to increase the popularity of bitcoin among the local population, which can affect the price of the cryptocurrency.

The Central Bank of Iran (CBI) announced a ban on trading in foreign currency by individuals and companies on private exchanges across the country. According to local media reports, currency exchange in Iran are now only allowed to buy or sell gold coins «until further notice».

As reported, on 13 April, the head of public relations of the Central Bank Mohammed Ali Karimi (by Ali Karimi) said on Iranian TV that the new guidelines of the government are intended to «change the principles of work of points of exchange». He added that instead of buying and selling Fiat currencies for exchanges «can be the role of the facilitator in cases when Iranian banks not interact with some foreign banks.» Perhaps, the Central Bank considers this step as a temporary emergency measure due to the rapid depreciation of the Rial.

This step was taken by the government after last week was installed, the exchange rate and at the same time, the Central Bank has set a new maximum limit on the purchase of foreign currency of € 10,000 outside of the banking institutions. Because of this, Iranian citizens rushed to exchange offices to be able to buy currency, but it turned out that they are mostly empty, as the Central Bank hasn’t transferred them the funds.

In order to maintain the new fixed exchange rate of police took to the streets to prevent trading in foreign currency and the black market. Judging by the reports of law enforcement agencies of Tehran, detained several dozen traders foreign currency.

Such government actions may encourage Iranian citizens to purchase cryptocurrency and cause the growing popularity of bitcoin, and also affect its price in international markets. Recently, the Java expert on Islam said that bitcoin conforms to Sharia law. Since the vast majority of the people of Iran are Muslims, for them it opens up the possibility of investments in the cryptocurrency, which had previously been questioned by experts of Islam and even considered usury, which is forbidden by Islamic canonical law.

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