Living costs in Iran have risen substantially in recent months following a decline in the value of the Iranian national currency. Its sharp drop begun a few months ago, in what many attributed to concerns over an unstable economy amid fears of Trump’s embargoes. And the latest victims who are now feeling the pinch are innocent students studying abroad.
The U.S has vowed to target the core areas of the country’s economy, especially the banking sector. And according to an article done by the Guardian, dozens of Iranian students in the UK have been denied banking services. The students are now facing suspensions or risk not to graduate due to the inability to receive school fees and pocket money from home.
For instance, a 23-year old student has been told by the University to travel back to Iran and return with tuition fees in cash.
Students turning to Bitcoin
The sanctions and Swift’s withdrawal of its services in Iran has caused the Iranian students studying in the United Kingdom to switch to Bitcoin to bypass the banking system.
Bitcoin’s global attractiveness is because of its decentralized nature and quick transaction clearance times.
U.S sanctions work by placing bans on transactions and dealings with persons, countries, and organizations. These embargoes are usually implemented with the help of mainstream financial institutions.
However, digital currencies like Bitcoin work outside these established systems. In fact, Bitcoin was created to allow people to bypass banks and Swift international transfer system when sending and receiving money across the globe.
Cryptocurrency regulations in Iran
Cryptocurrency’s legality in Iran isn’t yet clear and hasn’t been officially accepted by the country’s government. However, in November, the Secretary of Iran’s Supreme Cyberspace Council said in a statement that the Iranian government is working towards legalizing crypto mining activities in the embattled country. Also, in attempts to curtail inflation, the state is looking forward to deploying its own cryptocurrency.
Image from Flickr.