The Trump administration has been responsible for the recent wave of economic sanctions placed on several countries. The most notable on this list has been Iran. The two country’s tense history around the accumulation of resources needed for atomic weapons has also added an element of global concern.
The European SWIFT: INSTEX in Action
The greatest pain point in the abrasive politics of Trump has indeed revolved around the nuclear deal with Iran. In 2015, the Middle Eastern country agreed to put a cap on any nuclear-related activity, as well as allow third-party inspections to verify their commitments. This has meant putting a limit on Iran’s uranium stockpile, an element used for both reactor fuel and nuclear weapons.
Parallel to this, the United States has also placed firm economic sanctions on who can do business with the country, a near-perfect ban on Iranian imports, and placed strict control over Iranian financial institutions. The history of both the nuclear deal and these sanctions is indeed intertwined. In controlling nearly all features of Iran’s national economy, the United States has also been able to control its nuclear activity by and large. The drawback, of course, is the lack of global exposure for Iranian businesses.
To alleviate this pressure, Irani citizen’s have turned to the borderless, censorship-resistant qualities of Bitcoin. In looking past the hype, replacing BTC with the Rial appears to be the best use case for the pioneer cryptocurrency. As of late, however, Europe has released an alternative solution.
INSTEX, or Instrument in Support of Trade Exchanges, is the EU’s answer to Trump’s crippling embargo on Iran.