Azari Jahromi, Former Minister of Communications, at the National "Ramz-Ati" Event:

Cryptocurrency Opportunity to Facilitate International Relations During Sanctions / Sanctions Have Placed Pressure on the People

Azari Jahromi, the former Minister of Communications, stated at the National "Ramz-Atee" event: "Sanctions have placed pressure on the people and are causing their lives to fall apart and face serious problems, but the authorities don’t feel this."

News ID: ۲۰۰۰۴۴۸

08 December 2024

EghtesadOnline: Mohammad-Javad Azari Jahromi, former Minister of Communications, said on the second day of the "Ramz-Atee" conference: "During the twelfth government, when the issue of cryptocurrencies was raised, economic officials in the government took such a strong stance that it nearly led to bloodshed. In the end, it was declared that cryptocurrencies were forbidden and considered 'moharebeh' (waging war against God), but now if some people have been granted mining licenses, it's okay for them to mine within a regulated framework."

Azari Jahromi added: "The unveiling of the Central Bank’s document on cryptocurrencies is good news, and the policymakers have taken a step forward, in a way it’s a respectful form of admitting their mistake. However, don’t expect that from tomorrow the regulations used in Singapore, Switzerland, and Japan will be implemented in our country. Policymakers in our country don’t yield to pressure unless it’s overwhelming, and one day they’ll realize that they need to put regulations in place because a large portion of people's assets have been lost and not protected."

He pointed out that according to some reports, the value of Iranians' assets in the cryptocurrency space is around 30 billion dollars. He said: "Naturally, people, under the burden of uncontrolled inflation that has plagued the Iranian economy in recent years and the recession in the market, have turned their economic behavior toward cryptocurrencies to preserve their wealth and generate income."

The former Minister of Communications continued: "If the right regulatory framework had been established, this market could have been regulated in a transparent manner, protecting people’s rights while also making use of this capacity. It would have been a good start for positive developments. Perhaps they would stop fighting technology and start using its capacities."

Azari Jahromi acknowledged: "Mr. Hemmati (former head of the Central Bank) suggested yesterday that digital currency professionals form an association, meaning that issuing licenses should be in the hands of this association, not the Central Bank."

He noted: "According to available data, the total value of cryptocurrency wallets related to Iranians is about 30 billion dollars. In fact, people have converted their money into 30 billion dollars in cryptocurrency due to concerns about price fluctuations or the devaluation of the rial, and this large amount of capital has left the country."

Azari Jahromi also stated: "Due to the recession in the market and inflation, people have converted part of their assets into cryptocurrencies and removed them from the economic cycle. My suggestion is that the Central Bank should accept cryptocurrencies as collateral. This is a general suggestion and, of course, it has flaws that can be discussed and reviewed."

During the "Ramz-Atee" event, the former Minister of Communications remarked: "We have no choice but to look at cryptocurrencies as an accepted reality and as an opportunity. We shouldn’t issue regulations that limit international interactions."

Azari Jahromi added: "Sanctions have placed pressure on the people, and their lives are falling apart, causing serious problems, yet the authorities don’t feel it."

He continued: "In such circumstances, where there is an opportunity in the form of cryptocurrencies, we are limiting international interactions in the issued guidelines, and we are eliminating the existing capacity."

The former Minister of Communications emphasized: "It’s true that we must protect people’s financial assets, but we should not limit international interactions. The opportunity cryptocurrencies provide can facilitate international relations during sanctions, and we should not destroy this."

Azari Jahromi concluded: "The potential that cryptocurrencies can create for us is far greater than the business of just a few online cryptocurrency exchanges."