The Iranian rial is at its lowest ever because protests have broken out in Tehran. Bitcoin, according to Bitwise CEO Hunter Horsley, can guard against currency collapse and economic mismanagement.
On Monday, riots broke out in Tehran when the rial plummeted to unprecedented lows versus the U.S dollar. People accuse the central bank policy of destroying their savings.
The exchange rate reached 1.4million rials to the dollar, a heavy blow to Iranian families. The anger of the locals was simmering in the streets of the city.
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Electronic money is a financial fortification.
Horsley wrote about the crisis on X, referring to Bitcoin as a protective measure. He posted on Twitter, Economic mismanagement- the story of the past, present, and future. Bitcoin is a novel means by which individuals will defend themselves.
Alex-Gladstein also pointed to the crisis on X. The chief strategy officer of the Human Rights Foundation observed that the official exchange rate stood at 70 rials per dollar in the early 1980s, depicting the dismal future breakdown of the currency.
The Governor of the Central Bank, Mohammad Reza Farzin, stepped down, which compounded the Iranian economy. Since the June crisis with Israel, the rial has depreciated by over 40 percent.
Government Crackdown Blocks Economic Solutions
Iran legalizes crypto trade but prohibits Bitcoin mining. Matthew Sigel of VanEck, appearing on X, indicated that the government has recently stepped down on unregistered mining and offered cash bounties for reporting neighbors.
Although cheap electricity is one of the reasons why mining is appealing, potential miners make approximately 1300 per Bitcoin. The currency is trading at about 87,600, with strict laws preventing the citizens from benefiting.
Eight Iranian banks are subject to dissolution. In October, Bank Melli failed, and more than 42 million Iranians were at risk of losing their assets. In February, the central bank threatened to shut another eight institutions unless they were reformed.
Economic misery is exacerbated by international sanctions. Iran was cut off by global financial networks, Nobitex exchange was compromised by an 81million hack in June, and crypto flows declined by 11% between June and July.
Source: https://www.livebitcoinnews.com/irans-currency-crisis-sparks-bitcoin-adoption-debate/
