The president of Iran, Hassan Rouhani, has suggested the development of a cryptocurrency to be used as an alternative to U.S. dollars in trading between Muslim countries.
Rouhani made this comment at a summit on Thursday in Malaysia, as reported by the Associated Press (AP). Rouhani claimed that the Muslim world should devise steps to save itself from the hegemony of the dollar and the financial system of the United States.
Since 1979, the U.S. had placed several economic, financial, scientific, and military sanctions on Iran. Rouhani emphasized that the U.S. had been using these economic sanctions as the primary instrument for dominance and intimidation among other nations. In his speech, Rouhani advocated the development of special banking and financial system using local currencies to be used for trading purposes in Muslim countries. Local reports suggest that a part of the process requires the creation of a cryptocurrency. According to him, there is also a need for Muslim states to step up cooperation in their political, banking, and insurance sectors to reduce foreign dependence.
Moreover, in his address to the Summit, Rouhani proposed the development of a Kuala Lumpur Summit fund to finance technological cooperation between Muslim nations with a view of entering the global market powerfully.
Leaders from Turkey, Qatar, and Malaysia. Meanwhile, Malaysia’s Prime Minister, Mahathir Bin Mohamad who attended the summit, agreed with Rouhani’s suggestion, as per Free Malaysia Today. He said that when they use the U.S. dollar, sanctions sometimes seem to hinder economic development. He then proposed that they can use their own currencies or, if not, have a uniform exchange.
On the other hand, Tayyip Erdogan, the president of Turkey, said that Islamic finance should be the priority of Islamic countries, criticizing the Organization of Islamic Cooperation and emphasizing that there is an absence of implementation of the platform that ties the Muslim communities together.