SWIFT Kicks Out Iran – Country Responds with State-issued Cryptocurrency

Following the disconnection by SWIFT, Iran is set to launch its own state-issued cryptocurrency to circumvent U.S. sanctions.

SWIFT Removes Iran Amidst Renewed U.S. Sanctions

During the weekend, Belgian interbank service provider, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) announced it was cutting off Iran from its financial messaging system. According to the Asia Times, the company carried this action because of U.S. sanctions.

Following the disconnection, the Islamic country would find it difficult settling import and export payments.  The removal was already decided days before the action took effect over the weekend. Steven Mnuchin, US Treasury Secretary, described the dismissal as “the right decision to protect the integrity of the international financial system.”

Mike Pompeo, the US Secretary of State, initially declared that the service provider would face heavy penalties if it failed to comply with the sanctions. Despite the Joint…