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February
16
2017

As Iran moves away from dollar completely, the Islamic state could provide unlimited potential for gold and Bitcoin
Kenneth Schortgen Jr.

Almost from the moment that President Barack Obama shipped Iran over $100 billion worth of cash, gold, and other frozen assets that the U.S. had controlled during their decade's long sanctions against the Islamic State, the Middle Eastern oil power began fomenting a new policy in which they would completely divest themselves from the dollar, and protect themselves from any future attempts by the U.S. in using the reserve currency as an economic weapon.

Additionally, Iran has been none too keen on transitioning towards the Euro as a full time replacement, and this has opened the door for the government to find alternative mediums of exchange that are outside the dominion of Western central banks.

As Iran moves away from using the US dollar, bitcoin has emerged as a potential replacement. The cryptocurrency could thrive in a country where more than 50 million people are connected to the internet, financial experts claim. 

In the wake of US President Donald Trump’s travel restrictions on seven countries including Iran, the governor of the Central Bank of Iran announced last month that the US dollar will be replaced with a stable reserve currency more frequently used in foreign trades. 

Two possible replacements are being explored such as using one currency, potentially the euro, or allowing Iranians to select from multiple currencies, reported the Coin Telegraph. 

The announcement has caught the attention of the country’s first bitcoin exchange, BTXCapital, which sees Iran as a market with potential to grow. “The market is massive. A large population with a high proportion connected to the internet means there is a lot of completely untapped market potential,” Ganesh Jung, CEO of Draglet who develop an exchange platform used by BTXCapital, told IBTimes UK. - Russia Today

“We’re seeing the emergence of a true Eurasian Golden Triangle with China, Russia and Iran as the three key points,” Engdahl underscores. 

“With the stated plan to route the Silk Road rail infrastructure to assist the mining of new gold for currency backing of the Eurasian member states, including now Iran with its significant own unexploited gold, the hyper-inflated, debt-bloated dollar system is gaining a formidable positive alternative, one committed to peace and development,” the researcher concludes. - Hang The Bankers

In the past year foreigners have been selling more dollar reserves than they have been buying, with Japan and China dumping nearly $1 trillion over the past 12 months.  And with all signals pointing towards the Euro collapsing once elections in France, Italy, and Holland take place, Iran is looking to be well prepared for the next monetary system to emerge, whether it be with gold, Bitcoin, or a combination of both.

As a historian in his primary field of study, and an investor in the real world, Kenneth Schortgen has a keen perspective on all facets of the financial world. He has owned his own business and corporation, and has been an investor in many different markets such as securities, real estate, currency trading, and international trusts. Kenneth Schortgen Jr.His desire is to provide you with the true understanding of markets and the economy, and to give you the information that will help you make your own decisions in these troubling, and quite often, fascinating times regarding your economic decisions. Kenneth is not a certified financial advisor, and his only goal is to give you true information, by which you can see things as they happen, and in many cases, before they happen.

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