Iranians Protest Against Dramatic Currency Collapse
Protests erupted in Tehran as the Iranian rial hit record lows, prompting a Bitwise CEO to suggest Bitcoin as a hedge against mismanagement.Summary
Protests broke out in Tehran due to the Iranian rial reaching record lows against the US dollar, with locals blaming the central bank's poor fiscal policies for the collapse in their savings' value. Bitwise CEO Hunter Horsley commented that Bitcoin offers a way for people globally to protect themselves from plunging currency values caused by economic mismanagement. The rial has lost over 40% of its purchasing power since June, trading at about 1.4 million to the dollar, a stark contrast to the 70 per dollar rate in the early 1980s. Amid the unrest, the Central Bank of Iran’s Governor, Mohammad Reza Farzin, resigned. Furthermore, Iranians face economic hardship due to international sanctions, which have limited access to global financial networks and weakened the local banking sector, evidenced by the bankruptcy of Bank Melli and warnings against eight other banks. Despite having cheap electricity, strict government regulations on Bitcoin mining, including cracking down on unregistered miners, have prevented Iranians from capitalizing on the asset as a store of value.
(Source：Cointelegraph)