Iran's President proposes crypto for Muslim nations as an alternative to the US dollar

In a speech delivered at an Islamic conference in Malaysia, Iran President Hassan Rouhani proposed the creation of a cryptocurrency to reduce reliance on the U.S. dollar for international trade. More broadly Rouhani urged Muslim nations to deepen financial and trade cooperation in order to fight U.S. economic hegemony, asserting that U.S. economic sanctions are “the main tools of domineering hegemony and bullying [other nations].”

Why it matters:

• The proposal follows a recently announced plan by BRICS nations to create a “unified payment system that settles transactions in a single cryptocurrency.” Notably the group is also “exploring an alternative to the US-dominated SWIFT payment mechanism in a bid to smoothen trade with countries facing American sanctions.”
• There have now been several government backed digital currency announcements as governments are now waking up to the opportunity to shake up the prevailing economic order using cryptocurrency inspired technologies.