Making sense of the financial ecosystem in this day and age is all but impossible. There are so many under the table deals and agreements, as well as other political plays going on at nay given time. To make matters even more confusing, Iran is looking to export oil again but refuses to accept payments in US Dollar. Instead, they demand to be paid in Euro, which could be seen as a token of gratitude for the lifting of sanctions last month. Wouldn’t the world be a better place if everybody just paid in Bitcoin?
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Iran Prefers Euro Over US Dollar
There are several reasons why this announcement makes a lot of sense, though. First of all, Iran and the European Union has been thoroughly exploring their business ties and come to some mutual agreements everyone involved can benefit from in the long run. Due to these renewed ties, a strong preference for being paid in Euros seems logical.
But there is another reason for this renewed love relation between Iran and Europe, as the European Union lifted various sanctions last month. While this in itself might not be reason enough to warrant a preference for Euro, Iran is also known for not taking a liking to the United States or their currency by any means.
In fact, some people feel that any currency other than the US Dollar would be preferable to the country as it offers both financial and political advantages. Keeping in mind how Iran has tried to move away from the United States in the past, this appears to be just another attempt to achieve that goal. However, as the world’s economy is mostly linked to the US Dollar, that may be a lot easier said than done.
It remains to be seen whether or not this announcement will have any effect on the currency markets whatsoever. The Euro is not in a very strong position while the US Dollar bull run continues. Plus, with the oil prices remaining at the low end, moving to Euro could hurt Iran in the long run.
Many financial experts are keeping a close eye on the value of the Euro, which could dip even lower in the months to come. However, that situation will heavily depend on whether or not the Federal Reserve decides to raise the interest rates again. That being said, the world is a better place if everybody started using Bitcoin.
Unlike these squabbles over fiat currencies and nation sanctions, Bitcoin acts as a global currency that removes any borders from the equation. Such a powerful global form of payment will eventually create an ecosystem where more goods can be shared between all of the people in the world.
Source: CNN Money
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