Sputnik - Iran is poised to make an entrance into the global digital financial market by introducing its own cryptocurrency backed by the country�s vast reserves of oil and natural gas.




Sam Barden, head of�an international commodity trading and advisory company SBI Markets, postulated that Iran may be seeking to�create its very own national cryptocurrency � the so called �energy coin�.

The Iranian Ministry of�Information and Communications Technology has also announced that the country intends to�create its own cryptocurrency infrastructure as�it would be in�Tehran�s interest.

Hoshyar Rostami, an independent Iranian economist and head of�the finance department at�the Canadian University of�Economic Research Finapath, in�Iran, told�Sputnik Iranhowever that Tehran is unlikely to�launch a digital currency in�the near�future as�there is a number of�issues that need to�be dealt with�first.
"Just like�with physical currency like, for�example, the US dollar, there are certain complications involved with�s cryptocurrency as�well. When you purchase some kind of�goods using US dollars, the money itself does not move anywhere � instead, it is SWIFT-codes and SWIFT-messages that move and cause the money to�be transferred from�one account to�another. Also, the sender and the received play an important part in�this process. For example, the US dollar is not Iranian currency, so Iran takes part in�a US dollar transaction it ends up�being subjected to�restrictions. And the same may happen when cryptocurrency is used; in�fact, things may even get worse," he said.


According to�Rostami, one of�the biggest problems that need to�be resolved before�launching the �energy coin� is the Iranian currency�s non-involvement into�the global financial system.
"Our chief problem is not the creation of�this digital cryptocurrency itself. First we need to�bring our national currency up�to the global standards and to�ensure that it is recognized by�the international currency system," Rostami explained, adding that creating a new cryptocurrency before�accomplishing this task would only create more problems for�Iran.


He also insisted that by�creating the cryptocurrency, even if it is backed by�oil and natural gas, Iran wouldn�t be able to�evade the sanctions imposed against�it.
"Even if we try and use new technological innovations to�try and bypass sanctions or to�remove the existing restrictions altogether, at�this time it would be simply impossible," Rostami concluded.


Earlier Venezuelan President Nicolas Maduro signaled his intent to�create a new national cryptocurrency called �the petro�, with�each of�its units backed by�a barrel of�crude produced in�the country.

The first release of�100 million units of�Venezuela's new digital currency is expected to�take place on�February 20�� March 19 and some 38.4 million Petros are expected to�be sold during�the preliminary phase of�the trading session, according to�media reports.

The views expressed by�Hoshyar Rostami are solely those of�the speaker and do not necessarily reflect the official position of�Sputnik.