Islamic States to Create Common Digital Currency to Push Back Against U.S. Sanctions

By Chetna Phour

Islamic countries around the world are planning to create a common cryptocurrency to fight against the United States sanctions. The new cryptocurrency will break the global dominance of the U.S. Dollar.

Erol Yarar, the chairman of International Business Forum (IBF) said that dollar had lost its purpose of international trading currency and the United States is using the dollar as a sanctioning tool. He stated

“The U.S. dollar is beyond a common currency; it has become a sanctioning tool.”

Since the end of world war II, U.S. Dollar is used as an international trading currency which gave the United States financial and political leverage among perceived weaker countries. Dollar is often used as an economic tool to punish the countries which refused to toe in front of America.

IBF is a Muslim focused business lobby group. Erol said that common digital currency would be designed to use in all Islamic states which will challenge the dominance of the dollar in the global financial system. Yarar further added that this year the target of IBF would be “Monetary Pluralism” which means to create a healthier and fairer trade environment. He said

“In IBF this year we will discuss the term ‘monetary pluralism’ to create a fairer and healthier trade environment. We will make a cryptocurrency system, that will be used for international trade among Islamic countries, a current issue.”

Recently, the United States imposed stringent economic sanctions against the Islamic Republic, Iran. Now the Muslim business leaders under International Business Forum are looking for ways to neutralizing the dominance of USD in the global trade. A number of European Union (E.U.) members are trying to protect Iran nuclear deal to keep the trade alive. E.U. countries are creating a special purpose vehicle which will undermine the U.S. sanctions by redirecting payments away from the USD.

To protect itself Iran has also announced the development of its fiat currency Rial backed national cryptocurrency. Recently BTC Wires reported that the crypto experts from Russia are helping Iran to develop their national digital currency.

Also Read: Iran Finalized the Development of Rial Backed National Cryptocurrency

Yarar said that Islamic countries should follow Iran and must create a common cryptocurrency system for use within like-minded countries. He stated that

“The U.S. keeps down money transfers, imposes sanctions on the international market, and causes crises in countries by using the dollar.”

He strongly believes that if Islamic countries create a cryptocurrency system to support the financial transactions, the power of U.S. sanctions will diminish with time.