Iran has currently a booming tourism sector but after the U.S economic sanctions, the country struggles to boost the economy. For this reason, the Iranian government is considering ways to increase Bitcoin adoption as a new way of boosting the flow of revenue into the tourism industry. We read more in the brand new bitcoin news below.
The private and public stakeholders in the country are seeing benefits from adopting crypto payments especially since the restrictions led by the US. According to Al-Monitor, there are members of the government who are also looking into the blockchain technology but the private sector actors are also interested in crypto payments in the tourism industry. After the sanctions imposed to the country, people fear that tourists may want to skip on visiting Iran which will lead to their revenue to drop and to hurt the economy of the country totally.
Teheran is trying to protect cash flow in this sector by accepting cryptocurrency payments. The problem is tourists who visit the country cannot make payments using credit or debit cards. For this reason, the Iranian Cultural Heritage and Tourism Organization are trying to find a way to adopt digital currency but to also create a way for the tourists and the locals to buy crypto easily.
One of the options is a state-backed cryptocurrency. This can happen if Iran partners with India and creates a joint virtual currency which will increase tourism in both of the countries. However, Iran also wants to issue its own state-backed digital currency which will only be meant for the tourism there.
In the meantime, experts believe that this move is not a good enough solution and that the problem won’t be fixed. The senior executive at IranByBit, a travel agency that accepts BTC, Ziya Sadr, said:
“A state-run crypto doesn’t have the potential to address any of the problems of accessibility, acceptability and reliability of the local currency in tourism. On the other hand, a widely accepted and accessible cryptocurrency such as bitcoin could help small businesses in the tourism sector to allow a wide range of customers from anywhere in the world to use their coins inside Iran.”
For Iran, using cryptocurrencies is a way to have access to the global payment infrastructure after economic sanctions. Many are turning to bitcoin since the national currency of Iran, crashed by more than 60 percent in value in 2018.