The U.S recently removed Iran from the list of countries that can access SWIFT— a cross-border money transfer tool. This event has sparked a huge debate amongst Islamic countries around the world. The debate is centred on creating an avenue through which the global dominance of the U.S. dollar can be nipped. The most favoured option so far is the creation of a common digital currency for use in Islamic states.
Comments From Islamic Groups
The chairman of the Muslim-focused business lobby group International Business Forum (IBF), Erol Yararz has made some statements regarding this.
He stated that :
“The dollar has evolved into a “sanctioning tool, ” and it has lost its purpose as an international trading currency. A single cryptocurrency for Muslim nations will be designed primarily to undermine and challenge America’s established hegemony in the global financial system”
He further stated that:
“In IBF this year we will discuss the term ‘monetary pluralism’ to create a fairer and healthier trade environment. We will make a cryptocurrency system, that will be used for international trade among Islamic countries, a current issue,”
Right from time, the U.S dollar strength has been capitalised on by the country to punish states which fail to comply with its guidelines. This has been dated as far back as the end of World War II.
Iran Newly-Found Affinity for Cryptos
Iran, one of the key Islamic countries currently under the full US. Sanction has reportedly started making moves towards the creation of a state-backed cryptocurrency. A recent report made it known that the country has employed the services of Russian developers to help with building its blockchain economy. Once the crypto gets launched and distributed, the U.S dollar would have been fully undermined since the country would have been able to redirect payments away from the dollar.
Based on a recent report, Iran has finalised the process of building the crypto.