Faced with the imposing force exerted by the United States with its sanctions, each designated country seeks its way of dealing with it. Defending yourself from your influential economic power is not easy, however, several of these countries are agreeing to see cryptocurrencies as a way out.
Hassan Rouhani, the president of Iran, has proposed the creation of a Muslim cryptocurrency as a defense. This could be one of the ways to defend against the economic dominance of the US.
The announcement took place during an Islamic conference in Malaysia on December 19. Hassan Rouhani, the Iranian president took the opportunity to encourage Muslim nations to strengthen financial and commercial cooperation, and in turn, reduce their dependence on the US dollar. The news comes after the report of The Associated Press (AP).
United States and its sanctions
Rouhani alleges that the United States uses economic sanctions to harass and control different nations. Therefore, it was decided to propose the establishment of a special banking and financial system among Muslim nations that use local currencies for trade. The news was corroborated by local media that also announced Rouhani’s proposal.
The media say Rouhani explained that Muslims as a whole should design measures to protect them from such domination.
The conference was attended by various countries such as Turkey, Qatar and Malaysia, obviously. Mahathir Mohamad, the Prime Minister of Malaysia, agreed to create an alternative to the US dollar according to a Free Malaysia Today publication. To date it is the only country that has given an answer to the proposal made by Rouhani. The publication also claims to be the first time that Iran and Turkey are considering creating an alternative currency to the US dollar. In addition, he clarified that there are several possibilities, or use their own coins or create a common one.
It is not the first time that Mahathir talks about something like that. He previously defended the introduction of an Islamic Dinar for trade between nations in order to reduce dependence on the US dollar. The big nations responded by action against them, and warn them not to use a different currency.
Blockchain technology makes it possible
The Iranian president explained that this time blockchain technology could make it work. Thanks to it, they can create a currency for all Muslim countries so that they benefit from the advantages of cryptocurrencies. In addition, blockchain has the potential to support innovation, research and development in the technology sector.
Turkey also has crypto plans
As we announced in early November, Turkey shared its intention to create its own digital currency. even that at the end of 2020 the first tests of the new cryptocurrency would be carried out.