Iran’s President has proposed to create a Muslim cryptocurrency as one of a number of means to confront the economic dominance of the United States.
Speaking at an Islamic conference in Malaysia on Dec. 19, Iranian President Hassan Rouhani called Muslim nations to strengthen financial and trade cooperation and to cut their reliance on U.S. dollar, according to a report by The Associated Press (AP).
New Muslim cryptocurrency to confront “U.S. economic hegemony”
As Rouhani argued that U.S. economic sanctions are the “main tools of domineering hegemony and bullying” of other nations. Rouhani put forward the establishment of a special banking and financial system among Muslim nations that use local currencies for trade. Local reports confirm that Rouhani proposed the creation of a cryptocurrency as part of the effort.
As reported by the AP, Rouhani said:
“The Muslim world should be designing measures to save themselves from the domination of the United States dollar and the American financial regime.”
Malaysia supports Iranian President’s idea to create an alternative to the U.S. dollar
The conference was also attended by leaders of major Muslim countries including Turkey, Qatar and host Malaysia, while Saudi Arabia and Pakistan withdrew from the conference.
The idea of the Iranian President has reportedly met with support from Malaysia alone to date, as the country’s Prime Minister, Mahathir Mohamad, endorsed the initiative, as reported by local publication Free Malaysia Today. The official noted that this was the first time that Iran and Turkey are considering the opportunity of creating an alternative to the U.S. dollar. He said:Top of Form
“We can use our own currencies or have a common currency.”
Meanwhile, Turkish President Recep Tayyip Erdogan apparently criticized the Organisation of Islamic Cooperation, arguing that the platform that connects the Muslim world together demonstrated a “lack of implementation.” Erdogan also outlined that Muslim countries needed to focus on Islamic financing, suggesting the establishment of a special working group.
Other countries trying to bypass U.S. sanctions with crypto
A number of global jurisdictions have been considering the creation of a cryptocurrency to dodge sanctions by the U.S. to date. As reported by Cointelegraph in late September, authorities in North Korea announced their intention to issue a digital currency, with experts believing that the initiative aims to help the country to bypass sanctions by the U.S..
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Meanwhile, Venezuela is apparently one of the most popular examples of countries trying to circumvent U.S. sanctions using their own crypto. Launched in February 2018, the Petro became the world’s first national oil-baked cryptocurrency.
By Zerohedge via Cointelegraph.com
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The petro-yuan is one of the world’s five reserve currencies and it is convertible. Moreover, it is supported by the world’s largest economy based on purchasing power parity (PPP) and also the world’s largest crude oil importer.
The petro-yuan provides a viable way to circumvent the petrodollar system and evade US sanctions.
In addition to using the petro-yuan, countries suffering from US sanctions can easily use barter trade or alternatively their national currencies in bilateral trade between them.
China and Russia have been successfully using their national currencies for trade between them. This practice has helped Russia’s economy overcome US sanctions and flourish.
Dr Mamdouh G Salameh
International Oil Economist
Visiting Professor of Energy Economics at ESCP Europe Business School, London