Iran Ditches Rial in Hyperinflation Crisis — Bitcoin Demand Rises

Ravaged by crippling hyperinflation, Iran’s Parliament has sanctioned the redenomination of its fiat — the rial — by replacing it with a new currency called the toman. According to the plan, each toman will be worth 10,000 rials.

The redenomination plan effectively removes four place values (four zeros) from the Iranian national currency as part of efforts to kickstart an economic recovery from the country. It is a move that echoes steps taken by other countries like Venezuela and Zimbabwe amid huge inflation.

With the United States exiting its nuclear deal with Iran and reintroducing sanctions, the country’s economic situation has been in a tailspin. Virtually frozen from the international scene, Iran has been facing a severe liquidity crunch and foreign exchange shortage.

Typically, people living in countries suffering from an economic crisis turn to cryptocurrency not only as a way of preserving wealth but also as a means of carrying out international transactions. Iran’s…