The price of Bitcoin skyrocket in Iran on Wednesday after President Hassan Rouhani approved plans to mainstream bitcoin mining – and as the local currency experience a rapid fall.
Bitcoin hit a world record $24,000 on the Iranian exchange EXIR, eclipsing its previous high of $20,000, as investors piled into the digital currency in search of a safe haven against the falling rial.
According to a tweet by EXIR “bitcoin bull markets already started in Iran as rial price goes down against USD.” According to a Reuters report, the rial is trading at around 138,000 against the US dollar on the streets of Tehran.
Iran announced on Wednesday that it will officially start to recognise the mining of bitcoin and other cryptocurrencies as an industry within three weeks.
The country’s Central Bank, which overseas foreign exchange and monetary policy, is to draft a policy framework for the industry, said Abolhassan Firouzabadi, Secretary of Iran’s Supreme Council of Cyberspace.
The Iranian bitcoin skyrocket, broadly reflects the gap between the official exchange rate and the one on the street, a reflection of the inflationary pressures building up in an economy under US sanctions. At $24,000 BTC in Iran is trading at a premium of about 240 percent to the global average. Coinmarketcap.com quoted bitcoin at $7,017, at press time.