Sanctions helped remove Iran from the SWIFT network, is this good news for crypto?
This week, the U.S. has officially removed Iran's central bank from the SWIFT network.
Cool, what is SWIFT?
SWIFT is defined as:
"Society for Worldwide Interbank Financial Telecommunications. Global communication network that facilitates 24-hour secure international exchange of payment instructions between banks, central banks, multinational corporations, and major securities firms. A member owned cooperative organized in 1977 under Belgium law, it now includes over 6,500 participating members from more than 180 countries which together process in excess of a billion messages every year (about 300 million messages every day)."
(Source: http://www.businessdictionary.com/definition/SWIFT.html)
The U.S. government had imposed strict sanctions back in May which removed commercial banks in Iran from the SWIFT network.
Now, they have gone full nuclear (not literally) and removed the country's central bank as well.
(Source: https://www.ccn.com/sanctions-remove-iran-from-swift-will-it-switch-to-crypto-as-planned/)
Why does this matter?
This is interesting because Iran is basically cut off from working with other financial institutions worldwide.
Which may force them into crypto, something Iran hinted at several months back when the sanctions on commercial banks started to roll out.
Some large business in Iran are already going this route.
Back in July, HotelsinIran decided to integrate crypto after it became difficult to accept many fiat currencies.
A fact that didn't go unnoticed by Leonhard Weese, the co-founder of the Hong Kong Bitcoin Association.
Specifically, Weese had this to say:
“Many people still look at cryptocurrencies and say ‘I won’t use this.’ But already in 2018 people are getting into the situation where they have to use cryptocurrencies as their only payment option, or else they can’t conclude their trade. This is how Bitcoin will eventually be adopted."
(Source: https://www.ccn.com/sanctions-remove-iran-from-swift-will-it-switch-to-crypto-as-planned/)
This is how bitcoin will be adopted?! I like the sound of that...
A boon for bitcoin and crypto?
We can't say for sure what Iran will do next, but it seems entirely likely/possible they will be forced to use bitcoin and other major cryptocurrencies in order to facilitate trade.
If this happens, it would likely be a major boon for bitcoin and the like, and as Weese mentions, this sort of thing is going to be how bitcoin eventually gets adopted worldwide.
Also keep in mind that Iran is the 3rd cheapest country in the world to mine bitcoin.
However, they may even develop their own cryptocurrency which sounds like may already be under way:
http://www.atimes.com/article/iran-prepares-cryptocurrency-as-us-cuts-swift-services/
That would be less positive for bitcoin but I would imagine money would still flow into bitcoin as people would want to hold different cryptocurrencies that are not controlled by any single entity.
Stay informed my friends.
Image Source:
https://www.rt.com/business/440017-iran-swift-analogue-sanctions/
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