The US sanctions against Iran have cut economic corridors for the Western Asian country; the victims this time now are students. The students in Iran who are unable to access their money on Iranian Bank accounts rely entirely on Bitcoin to bypass the sanctions.
As per reports from the Guardian, Iranian students in the United Kingdom have now been denied banking services. The denying of services is resulting in students failing to clear their payment dues and their tuition fees.
Earlier in November of this year, the US ordered the global payment facilitator to discontinue Iran from its system. The sanctions were mainly aimed at the Iranian economy, which also has affected the students from the country. However, Bitcoin is proving its worth, as it perfectly achieves its use cases of expediting censorship-resistant transactions.
A 23-year old student, Parsa Sadat, studying law at the University of Reading, is among those Iranian students, who are unable to graduate; Sadat and other students have been asked to either go Iran and get money in cash or are liable to suspension from their course.
Mai Sato, associate professor in criminology and Sadat’s tutor, said:
“Even if the funds for the flight and fees can be raised, requiring Parsa to transport large amounts of cash within and from a country classified by the Foreign Office as a high-risk country, exposes the university to justifiable criticism. Parsa himself feels that carrying several thousand pounds in cash is dangerous.”
Sato also added, “The university has an opportunity here to be seen to take a stand against a clear injustice that flows directly from President Trump’s policy towards Iran.”
As there is no alternate solution to the problem, students are now forced to take some bold measures to bypass Trump’s sanctions. Maziar Bahari, the chief editor at IranWire.com, told the Guardian that many Iranian students have started using Bitcoin in order to bypass the economic struggles. He said, “They are using Bitcoin and other cryptocurrencies in order to get money.”
The decentralized payment system, makes the bitcoin protocol stay semi-anonymous; this allows parents from Iran, can purchase bitcoins from local exchanges and send it across into wallets to their families located in any part of the world.
The process can be done without having to obtain permission from the central authorities. Nevertheless, some governments ask bitcoin users to submit their transaction reports, as there have been concerns over money laundering and financing terrorists in the past.
Iranian parents are inviting problems by funding their children’s education in bitcoin and other cryptocurrencies, unless their country agrees to rethink their viewpoint on cryptocurrencies.
In November of this year, Secretary of Iran’s Supreme Cyberspace Council issued a statement saying that the Iranian government is working on legalizing cryptocurrency mining. Also, the country is looking to deploy its own cryptocurrency.