Monetary and Banking Research Institution
Date:1/5/2019 9:55:52 AM   |   Code : 294015
Creating Restrictions in Blockchain is not Possible
Creating Restrictions in Blockchain is not Possible
The director of the Informatics Services Company said that given the fact that the Blockchain is a technology, no country can prevent the entry and activity of other countries in this area.

According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Sayyed Abutaleb Najafi, in responding to the question that if it is possible to create restrictions on the Blockchain at the international level, said: Given that Blockchain is a technology and is not limitable, therefore many companies are now using it in Iran.

The CEO of Informatics Services Company emphasized: No country can prevent the use of this technology in other countries, but if there is an agreement on regional payments on Blockchain platform, a bank that exchanges currency-backed securities in regional agreements in order to settle transactions can be banned.

“Many experts say that with cryptocurrencies, sanctions are circumvented, while the cryptocurrency base is the use of Blockchain technology, and it cannot be used as a tool in the subject of sanctions management in regional and international exchanges.” he said in a speech on new methods for settlement and commercial payments in international financial transactions.

He considered the political and economic agreements between governments on the Blockchain platform with the use of cryptocurrencies, to be the most important issue in international exchanges, saying that this has faced a number of complexities on how to settle international financial transactions and who or which institution in which country is the settlement agent. But the most important issue is the cryptocurrency used in regional and international financial exchanges.

The CEO of Informatics Services Company, arguing that assets that agreed upon by all countries should be considered as cryptocurrency backing for regional exchanges, which can be gold, Dollar and Euro, added: “If such agreements are formed, at next stages, storage of backing in the agent bank, as an institution for settlement, must be done.

Najafi noted: The above are the main challenges in conducting financial exchanges with cryptocurrencies and, if these obstacles are not resolved, this novel financial instrument cannot be used in the region for commercial exchanges.

He argued that major trade exchanges are being made by economic actors, emphasizing that motivating and encouraging economic actors to take advantage of Blockchain is another factor to be taken into consideration, but merchants confidence in a robust legal framework for financial exchanges on Blockchain platform, and the guarantee for the security of information and the risk of transactions at the time of implementation has particular importance in using cryptocurrencies to manage regional financial and trading exchanges.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.

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