Iran is planning to replace their fiat – the rial – with a new currency called the toman because of surging hyperinflation.

The idea is that the Iranian Central Bank will slash four zeros from the national currency – 10,000 rials will, therefore, become 1 toman.

The struggling Republic has already been experiencing economic difficulty due to sanctions imposed by the United States and her allies, but their situation has been exacerbated by the COVID-19 pandemic which has led the government to take the immediate action.

Interestingly, the devaluation of its currency has caused bitcoin demand to skyrocket as investors and savers seek alternative stores of value.

This mirrors similar steps being taken in countries like Venezuela where hyperinflation has ravaged the economy.

As reported here on May 8th, cryptocurrencies such as Bitcoin, Ethereum, DASH and Litecoin could be accepted in Venezuela as legal tender, perhaps as soon as June 1st.

The South American country, which has long had economic issues due to monetary hyperinflation, is looking to adopt crypto in a fierce drive that appears to have government backing.

Astonishingly, hyperinflation hit 10,000,000% last year and even though the rate has slowed in recent months, crypto is still viewed as more stable in value and easier to use.

As in Venezuela, cryptocurrency could be seen as a much more stable form of money than the Iranian sovereign currency, the toman, and far more convenient to use.

Cryptocurrency transactions are already popular with the Iranian public, according to various reports. In some interviews, people have described bitcoin as the only way to get money out of Iran.

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