Iranian president proposes digital currency to facilitate trade between muslim countries
President of Iran, Hassan Rouhani, proposed the creation of a digital currency to be used for trade between Muslim countries at the Kuala Lumpur summit in Malaysia, which was attended by leaders from Turkey, Qatar and Malaysia. The new currency would be used instead of the US dollar to put an end to the current United States hegemony.
According to the president, the United States of America utilise economic sanctions as the “main tools of domineering hegemony and bullying”. Recently, Iranian citizens protested because of a hike in gasoline prices that was a direct result of US sanctions.
Iran is not the only country looking to challenge the current supremacy of the US dollar. A few months ago, Russia suggested a digital currency to be used amongst the BRICS (Brazil-Russia-India-China-South Africa) group. The BRICS digital currency remains an idea as of now, nonetheless a single payment system is being developed called BRICS Pay. The latter will allow users to pay for an item in any, and from any, BRICS country through a smartphone.
It is important to recognise the difference between the common digital assets traded on cryptocurrency exchanges and the proposed digital currencies by countries such as China, Iran and Russia, as these are simply a digital version of a government-issued currency.
Image Licensed via Pixabay
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