12 million Iranians have entered the cryptocurrency market; 77% of them have entered the market with the aim of preserving the value of money, whose daily transactions are 5 to 10 thousand billion tomans.
According to Arzdigital and quoted by Mehr News Agency, the two commissions “Money and Capital Markets” and “Economy of Innovation and Digital Transformation” of the Tehran Chamber of Commerce during a joint meeting reviewed and analyzed the situation of digital currencies in the country.
Private-sector activists present at the meeting often believed that the government should abandon negative behaviors and policies and accept the reality of digital currencies and play the role of regulator, despite the widespread tendency of people to invest in this market. But representatives of the central bank also attended the meeting, saying that there was no positive and uniform attitude towards cryptocurrencies in the country and that the government had concerns in this regard.
At the beginning of the meeting, Ferial Mostofi, the head of the Money and Capital Markets Commission of the Tehran Chamber of Commerce and Industry, referred to the people’s interest in the issue of cryptocurrencies and said:
Economic instability and inflationary expectations have caused people to often rush to different markets without sufficient knowledge and consideration of the basics of investing, and officials need to think of basic measures to manage these emotional behaviors.
He pointed out that in the past, people have turned to pyramid schemes, unauthorized financial institutions, coin and currency markets and stock exchanges to maintain the value of their money. It is somewhat out of control.
Mostofi also noted that people are afraid to participate in long-term investments because of domestic and foreign sanctions.
The head of the Money and Capital Markets Commission of the Tehran Chamber of Commerce and Industry, referring to the risk of investing in the digital currency market without sufficient knowledge and the problems that have occurred for some digital currency exchangers in recent months, made three suggestions for optimal management of this market.
His first suggestion was for the central bank to introduce authorized exchanges to trade these currencies. Also, with the introduction of ETFs by the government, people will be encouraged to invest in these digital currency markets through these funds.
Mostofi’s third suggestion was to expand education in this area, and he said that the Tehran Chamber could hold training courses in this area.
12 million Iranians enter the cryptocurrency market / 77% goal: to preserve the value of money
Following this meeting, Farzin Ferdis, Deputy Chairman of the Innovation Economy and Digital Transformation Commission of the Tehran Chamber, presented a report on cryptocurrencies and said during the presentation of this report:
The total value of the cryptocurrency market in the world as of May 8, 2021 reached $ 2460 billion, and the total value of the Bitcoin market during the same period is estimated at $ 1,110 billion. Also, the number of cryptocurrencies accepted and listed in world famous exchange offices until April 15, 2021 shows the number 4701. While the number of currency codes in 2013 was only 66.
“The actors and stakeholders of a monetary system are the people, the government and the businesses,” he said.
In the cryptocurrency market, people have moved ahead of the rest as always. According to a survey conducted by Ilia Management Consulting Company on 5,600 people aged 18 to 65 in the country, 31% of respondents claimed that they currently hold a currency code. 6% stated that they already had such assets. Sixty-three percent said they had never had a currency code.
He explained that “62% of the people who have bought the currency code have entered the market in the last six months and the daily exchange volume of cryptocurrencies at the end of March is estimated between 5 to 10 thousand billion tomans.”
Seventy-seven percent of cryptocurrency holders say they have entered the market to invest and preserve the value of money. Fifteen percent of investing in this market is their job and profession, 3 percent due to technology support, 3 percent due to curiosity and entertainment, one percent due to international money transfer and one percent due to payment and purchase.
Ferdis further referred to the position of businesses in this market and said:
Eighty-eight percent of businesses said they earned their passwords through online trading platforms. 5% through physical exchange, 4% through extraction, 1% in exchange for selling products and services, and 2% through receiving passwords from friends and relatives.
Referring to the transfer of $ 50 million of capital from domestic platforms in 90 hours following the notification of Shaparak’s directive to payment companies, he said:
Studies show that there are 2.5 million cryptocurrency accounts in domestic exchange offices, which, considering the function of four or five to one, about twelve million people in Iran have a cryptocurrency. Ferdis went on to say that the biggest concern of people and businesses in the field of currency cryptocurrency is the uncertainty of legal issues, sharp fluctuations in value, lack of security and fraud, lack of transparent support and religious considerations. He said that the government and the government will now be in the stage of denial and tomorrow will be in the stage of regret. “Implementing the resolution of the Government Economic Commission and the proposed documents agreed upon by the three private sector organizations”, “Strengthening and accelerating the regulation of blockchain technology and currency cryptography with the sandbox approach”, “Creating a technical and legal structure similar to Shaparak or Shetab”, “Creating protocols” Relevant jurisdiction “and” Recognition of digital assets in the country “were among these proposals.
Following this meeting, Mehdi Masoumi Esfahani, a member of the Money and Capital Markets Commission of the Tehran Chamber, referred to the commission’s efforts in the previous term of the House of Representatives to recognize digital currencies and that at that time the Ministry of Silence was offered one of the currencies used. In the opening of the LC, there are digital currencies, which of course have not been considered. He went on to point out that China intends to conduct its exchanges on the basis of digital currencies, saying that perhaps Iran could also take advantage of this opportunity.
Continuing the meeting, Reza Ghorbani, head of the Fintech Commission of the Tehran Computer Guild Organization, said that “the lack of law, regulation and supervision are among the main challenges in the field of digital currencies.” In recent years, the regulator has preferred that It is enough to just warn. He continued by pointing out that people are entering the cryptocurrency market in front of the regulator:
Cryptocurrencies are traceable for transparency and are not money laundering tools.
Reza Tabibzadeh also emphasized that digital currencies can make a difference, and called for the Commission to examine its strengths and weaknesses and conduct additional studies in this field.
Does the country have the capacity to accept the losses of digital currencies?
Alireza Tavakoli Kashi, Vice President for Development of the Iranian Investment Institutions Association, pointed out that
“Bitcoin approval by a government official may be very risky”
He questioned who would be responsible if bitcoin fell if it became official and, for example, the possibility of trading it on a place such as a stock exchange or by an investment fund or a digital brokerage or even a banking network. And does the country have the capacity to accept this?
Abbas Argon, the commission’s deputy chairman, also stressed the need to regulate cryptocurrency transactions and prevent investors from losing money. “The country is facing an emerging phenomenon,” he said.
Policymakers need to get out of passivity; Because this passivity causes losses to investors.
Afshin Kolahy, a member of the Economic Commission for Innovation and Digital Transformation of the Tehran Chamber, also continued by pointing out that the issue of currency cryptocurrencies is an example of a dark room for a large part of the government:
The issue of digital currencies is entrenched in the field of technology, and this discourse needs to be shaped in other areas as well. Emphasizing the need to develop training in digital currencies, he said: “The big problem is that in Iran, decisions are usually made on the basis of violations and exceptions, and it is not appropriate for scams to be linked to Ramzarz.” Therefore, it is expected that at least in the case of digital currencies, policies will not be based on negative methods.
Hassan Samanipour, who was present at the meeting on behalf of the foreign exchange department of the Central Bank, referring to the decision of the Cabinet in October 2016, said: “According to this decision, the first category cryptocurrencies will be usable for import.” Of course, in order for this resolution to be implemented, some obstacles need to be removed. He added:
We are looking for guidelines to be developed and communicated in this regard. Referring to the government’s concerns about cryptocurrencies, Samanipour said everyone who sympathizes with the country understands those concerns.
Mustafa Naghipour, secretary of the FinTech Association, also noted that the period of negative confrontation has passed and governments are now cooperating. Referring to the experience of some countries in introducing cryptocurrencies with the support of the Central Bank, he said that in 1397, despite the contradictory signals, Iran also unveiled a currency code that has not had any output so far. Naghipour further spoke about the presentation of a proposed document on the management of cryptocurrencies in the country by a number of private sector organizations to the government’s economic commission and that the fate of this document is not clear. “The interior is vague on the subject of cryptocurrencies,” he said. On the one hand, the Ministry of Energy has doubled the price of electricity, and on the other hand, the judiciary is conducting negative propaganda against the currency code. This situation does not lead us to take advantage of digital currencies. Naghipour also expressed hope that the government would refrain from negative behavior in this regard.
Mohammad Reza Mani Yekta, Deputy Director of Payment Systems of the Central Bank, also stated that
“The dangers of exchanging digital currencies have become serious for the people and we must get out of this situation.”
He continued: “There is no positive and uniform view of cryptocurrencies in the country, and one spectrum fully agrees and the other spectrum raises serious considerations.”
In another part of his speech, he pointed out that the proposed document of the private sector was not silenced and many meetings were held around it, saying that the risk of exchanging passwords is so high that none of the pillars of the private sector can accept this risk. There is now an increase in vacancies, and what is the private sector’s response to this? Mani Yekta stressed that the private sector should not have extra-legal expectations from the institutions and should help to converge in this regard.
Following this meeting, after the other participants expressed their views and it was decided that these meetings will continue to reach a consensus on digital currencies and its reflection to the relevant institutions.