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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Glad we put sanctions on this Country. They Rule by Theocracy whicxh is a batshit crazy way to run a Country. They have even executed people for being homosexual. What a backwards Country.
Frankly, I would rather not be involved with this Country in any way,shape, or form. Not as long as they have religouse zealots ruling it.
Just for educational purposes, is swift the only system out there for banks to communicate?
I have in mind ripple system( crypto system)
I have in mind the system I heard China and Russia used.
Any ideas?
Keep on postin'
It is the most widely used by far. It is a way that nations can keep tabs on each other basically. There will be new systems popping up. Bitcoin is likely the beginning of that. No one likes that the US has the advantage of being the world's reserve currency, except the US of course.
Chinese like US being the reserve currency because they have invested a lot in USA and value of their investments would be basically zero without special treatment of US dollar.
On one hand, it would be good for BTC for both immediate buying pressure and also some real adoption. On the other hand, I worry that will turn US regulators more fiercely against it and encourage harsh actions against crypto.
That is a good point. I am sure they know this is possible, but yes once they start seeing some of countries with sanctions on them skirt them via bitcoin... bitcoin will probably be in the cross-hairs.
I think the importance to note here is the power centralized organizations have to control your monetary sovereignty and flexibility. While I do not intend to get political on whether Iran deserves it or not, this demonstrates you do not have control of your money. As protectionism continues to grow, we should look to control more of our assets if possible.
Yep, I agree 100%. I think that is one of the biggest takeaways from this as well. I am sure the rest of the world is taking note. If you don't play by the rules of the US, then they will lock you out of the global financial system. Everyone is likely making back up plans...
It wouldn't surprise me... and soon! I read this back in Sept. and along with what you posted, I see it coming. How it will affect cryptos overall is still up in the air- but then, any adoption is good adoption.
https://news.bitcoin.com/iran-officially-recognizes-cryptocurrency-mining/
I had to deal with this nonsense last year when I was preparing for my trip to Germany. I'd never heard of SWIFT and the tellers at my small bank didn't know about it either. I had to go to a larger bank and contact the corporate office to get this all set up.
It was a complete headache and one I hope to never go through again. The crypto revolution can't happen fast enough for me!
source
In my opinion, it wouldn't affect crypto!
I'm saying this cuz I'm Iranian and from what I saw they tend to use old-fashioned ways not using crypto as a solution. I heard that in the news that they want to get supplies as a payment for selling oil and other things. yeah, it's barter :D