According to a local media report, more news from May 4th Iran’s new “reform of monetary and banking law” was approved in parliament. The new law will require 10,000 rials to move from rial to toma over the next two years.
Hyperinflation and the connection to BTC in Iran
In 2018, the Iranian authorities set an official exchange rate of around 42,000 rials to the dollar. Many currency exchanges still show this as the prevailing rate. At the same time Bitcoin peer-to-peer exchange LocalBitcoins records prices of 1,445,658,900 rials per BTC of around USD 34,500 according to the official exchange rate.
However, now is not the time to sell BTC in Iran. Despite official proclamations, the rial was destroyed alongside the Iranian economy.
According to Radio Free Europe Black market trading resulted in the US dollar being sold for 156,000 rials. Let’s say you cut off four zeros from the current rates, but they could face the same problems that hindered the rial.
Years of hyperinflation in Iran
U.S. sanctions after President Trump’s withdrawal from a nuclear deal in 2018 In 2015, they triggered years of hyperinflation and economic problems.
Recently Iran’s struggle against the corona virus and the collapse in the price of oil have exacerbated the existing problems.
Cointelegraph has already reported the increasing value of cryptocurrencies for Iranians. Other countries with hyperinflation have used cryptocurrencies to combat transferable securities. A new synthetic dollar was recently supported by BTC in Venezuela.