The fallout between the United States and the Iranian government, which led to the implementation of strict sanctions by the United States has begun to intensely affect the performance of the Iranian currency.
Inflation has now begun to choke the country’s traditional currency so much that the Iranian government, in a bid to curb the increased financial crisis, has approved a new bill that will decrease the number of zeros on the Rial currency.
From Rial to Toman
The Bill which has recently been approved by the Monetary and Banking Act will allow the transition from the use of its official national currency Rial to the Toman currency which has also been in use. The Rial which had lost 60% of its value from as far back as 2015 led to the reinforcement of bill three years later.
Under this bill, four zeros will be removed from the Rial as the country makes its shift to incept the Toman, which will now be equivalent to 10,000 Rials, as its new official currency.
Bitcoin Proponents have a solution for hyperinflation
“Hold something they cannot print”.
Reacting to the aforementioned event yesterday along with many others, was Alex Saunders, a top Bitcoin proponent who had also previously proposed that the solution to curbing Bitcoin’s volatility lies in a reduction of traders who continue to sell cryptocurrencies in return for Fiat.
This time around, Saunders took to Twitter to make a direct statement, saying that the deduction of the number of zeros on the Rial will do little to nothing when it comes to hindering any impending financial doom. Instead, Saunders believes that an investment in Bitcoin could largely aid Iran’s economy from its dependence on Fiat currencies.
Along with Saunders was the popular Bitcoin educator Ivan, who tweeted in affirmation whilst reminding the public of how much Fiat currencies have lost their value since the global pandemic surfaced.
This is in fact a very visible and undeniable occurrence that has plagued countries from all over the world, the most recent of which includes Nigeria with an inflation rate of 12.26% and Tunisia with nearly 7% in inflation in the past couple of weeks. These are a few amongst numerous countries which are faced with a rather gloomy and unpredictable fate.
Is Bitcoin the ultimate fix?
In response to Iran’s recent development, the CEO of Binance, recalls his investment in Bitcoin six years ago in the affirmation that it paid off.
In his words, “I’m just happy I went all in on Bitcoin 6 years ago”. Although he warned that it was in no way financial advice, it obviously implies that the CEO sees a possibility in Bitcoin changing the state of things for Iran and many other countries.