As a result of the strict sanctions imposed by the United States, the performance of the Iranian currency began to be heavily affected.
Inflation has now begun to strangle the country’s traditional currency so much that the Iranian government has approved a new bill to reduce the number of zeros in the Rial currency to prevent the rising financial crisis.
From Rial to Toman
The bill, recently approved in the Money and Banking Law, allows the transition from the use of the official national currency Rial to the Toman currency in use. Rial, which lost 60% of its value in 2015, caused the bill to rise much more in the last 5 years.
Under this draft law, four zeros will be subtracted from 10,000 Rials to switch to the new official currency of the country, Toman.
Bitcoin Has A Solution For Hyperinflation
Alex Saunders, a senior Bitcoin advocate, said that reducing the number of zeros in Rial would not be preventing any impending financial stink and would be of no use. Instead, Saunders believes that an investment in Bitcoin could largely save the Iranian economy from its dependence on Fiat currencies.
The value of Fiat currencies has fallen in the public eye since the emergence of the global pandemic. This is actually a very visible and undeniable event that disturbs countries around the world. Nigeria is among the latest examples and the country has an inflation rate of 12.26%. Nigeria is followed by Tunisia, which recently saw 7% inflation. These are just a few of the countless countries facing a rather gloomy and unpredictable fate.
Is Bitcoin (BTC) the Final Solution?
In response to the recent development of events in Iran, Binance CEO reminded him of his investment in Bitcoin 6 years ago and said he was very happy with this decision. Binance CEO expressed this feeling as follows:
I am happy to have invested in Bitcoin 6 years ago. This is not a financial advice. But for Iran and many other countries, there may be an opportunity to change something.
Not financial advice, but I am just happy I went all in on crypto 6 years ago. https://t.co/qTFNH5qboq
— CZ Binance (@cz_binance) May 5, 2020