US Department of Treasury Sanctions on Iran – Plans regarding digital currency.

16 February 2024 | 14:41

US Treasury Department Sanctions Informatics Services Corporation

The US Treasury Department has imposed sanctions on Informatics Services Corporation, which is owned by the Central Bank of Iran, as part of efforts to curb the development of the Iranian Central Bank Digital Currency (CBDC) and other payment systems. These sanctions are part of broader efforts to limit Iran’s influence in the Middle East.

Sanctions on Companies from Dubai and Turkey

In addition, sanctions have also been imposed on two companies from Dubai and one from Turkey that assisted ISC in acquiring technology. These companies are Advance Banking Solution Trading and Freedom Star General Trading, which supported the Iranian company in procuring items safeguarding information subject to controls related to national security and counterterrorism.

Accusations Against the Central Bank of Iran

The Central Bank of Iran is accused of providing financial support to the Islamic Revolutionary Guard Corps and Hezbollah, two organizations aiming to destabilize the situation in the Middle East. This is why the United States has taken steps to limit the influence of the Iranian bank and associated companies.

Iran’s CBDC Plan and Counteracting Sanctions

Iran plans to use the digital bank currency to evade American sanctions, which is why it has joined the BRICS organization aimed at promoting economic cooperation among its members. Russia, also a member of BRICS, has supported the idea of using local currencies instead of the US dollar, which could reduce the impact of US sanctions on international trade.

Possibility of Using Gold-Backed Currency for Trade Between Iran and Russia

Russian reports suggest the possibility of using a gold-backed currency to facilitate trade between Iran and Russia, bypassing traditional payment channels under US control. Additionally, there is speculation about the potential use of digital asset scripts to facilitate transactions between the two countries.

Iran’s CBDC Tests in 2022

Iran has commenced testing its digital bank currency in 2022 using the Hyperledger Fabric platform. Introducing CBDC by Iran aims to facilitate commercial and financial transactions despite the presence of US sanctions.