Iranians desperately buy cryptocurrencies fearing US sanctions and economic instability. Demand for bitcoin rises manyfold as the first cryptocurrency shows less volatility than the national currency of the Islamic Republic.

The demand for bitcoins in Iran continues to grow. Bitcoin reached the price of $24,000 on the Iranian cryptocurrency exchange EXIR after the Iranian government recognized mining as a separate type of economic activity, thereby recognizing this type of earnings as legitimate.

Residents of Iran buy cryptocurrencies amid the tightening regulation of cross-border capital movements and fears of future US economic sanctions.

The Iranian rial fell to 148 thousand for $1, although the official rate is 42 thousand.

Earlier, the National Ministry of Information and Communication Technologies, the Central Bank, the Ministry of Industry, Resources and Trade, the Ministry of Energy, and the Ministry of Economy and Finance recognized the cryptocurrency mining as an independent industry, said the Secretary of the Iranian High Council of Cyberspace (HCC) Abolhassan Firouzabadi . According to him, this decision will be fixed legislatively in the next 2 weeks.

Firouzabadi confirmed that Iranian authorities consider launching of its own cryptocurrency to circumvent US sanctions.

A similar situation with growing demand for cryptocurrencies was demonstrated by other countries with an unstable economic situation, for example, in hyperinflationary Venezuela or Zimbabwe, as well as in Turkey, whose national currency also slipped substantially in 2018.