LocalBitcoins trades in Iran is on the rise after US President Donald trump on Wednesday issued an executive order stopping the purchase of Iranian aluminum, steel and iron. US President said the ban will stop Tehran from developing intercontinental ballistic weapons.
According to Iran’s President Hassan Rouhani, the sanctions issued against Iran by the US will stop Iran from adhering to some of the provisions of 2015 nuclear deal. The sanctions issued further destablelizes the Iranian rial.
Iran is facing a lot of political pressure and increased exclusion from the global economy, they therefore seeks digital currencies to secure their assets
According to data compiled by coin.dance, a cryptocurrency trading platform, Localbitcoins trades have increased. In May 5, Iranian rial volume on Localbitcoins surged to 25.3 billion from 21.4 billion in April 20, which represents a 51.5% increase in two weeks.
An official statement from the White House reads:
“Under the Iran nuclear deal, Iran was free to engage in and sponsor terrorist networks, develop its missile force, foment regional conflicts, unjustly detain United States citizens, and brutalize its own people, all while maintaining a robust nuclear infrastructure.
A lot can change in a year when we make bold decisions to defend America’s national security. Because of our action, the Iranian regime is struggling to fund its campaign of violent terror, as its economy heads into an unprecedented depression, government revenue dries up, and inflation spirals out of control.”
Iran is a major producer of steel in the region, it exported 138,000tons of copper, 200,000 tons of aluminum and 9.2 million metric tons of metal in 2018. Which represents over 2% of steel exported globally.
According to Bloomberg the Iranians are worried about their national currency. Also a report by AL Jazeera News indicated that Iranians are increasingly turning to Bitcoin to store their value.
Brad Sherman propose that the US ban BitCoin and other cryptocurrencies in order to increase economic and political control and to stop countries like Iran from escaping the sanction.
Do you think Localbitcoins trades will continue to rise as the US turns heat on Iran?
You may also be interested in: