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.
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.