Nasser Hakimi in an exclusive interview with the Iranian newspaper, Iran-Daily, published on Thursday, said that cryptocurrencies, such as bitcoin, have not yet come into extensive use and it would be risky to invest in them.
The rest of the interview is as follows:
He pointed out that digital currencies are based on blockchain technology which will change current structures of financial transactions and the ways of maintaining financial accounts in future.
A blockchain is a growing list of records, called blocks, which are linked and secured using cryptography.
Each block contains a hash pointer as a link to a previous block, a timestamp and transaction data.
By design, a blockchain is inherently resistant to modification of the data. It is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks.
Hakimi also said that today, digital currencies have turned into arbitrary mechanisms. In such conditions, one cannot offer an expert view on cryptocurrencies, since market participants can interpret it ambiguously — thus triggering speculation, he added.
'Currently, policymakers of financial systems — not just in Iran, but also across the world — are yet to come to a unified conclusion on cryptocurrencies and they deal with them cautiously. We are in such a state and are studying the situation.'
He added, 'Anyway, blockchain system and cryptocurrencies, like bitcoins, will eventually be prevalent and replace the current systems.'
Hakimi continued that since bitcoin trade has become common among the public and its price is fluctuating constantly, it is speculative. It can produce either high profit or heavy loss for investors, he added.
Therefore, tranquility should be maintained and there should be no scope for speculation in cryptocurrencies, he said.
He added since mobile Internet has become part of our daily lives, digital developments in banking system — previously restricted to online payment and online purchase — have entered a new phase.
People expect the remaining banking and financial operations to go online too, he stated.
He said great developments have taken place in the banking system in rendering services to people over the past 10 years.
At present, many digital technologies have been indigenized, he concluded.
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Tehran, Feb 1, IRNA - Head of Central Bank of Iran's Information Technology Department warned against investing in digital currencies.