Iran can't print paper, guy tells them to use BitCoin

[justusranvier]

Either someone donates a whole bunch of BTC into Iran and finds a way to randomly distribute them similar to mining (which at current difficulties + USD prices is not really an option there) so they can bootstrap or there's another way how to exchange goods/gold/iranian money for BTC that we need to establish and haven't thought about yet.

http://en.wikipedia.org/wiki/Remittances

[Sukrim]

Either someone donates a whole bunch of BTC into Iran and finds a way to randomly distribute them similar to mining (which at current difficulties + USD prices is not really an option there) so they can bootstrap or there's another way how to exchange goods/gold/iranian money for BTC that we need to establish and haven't thought about yet.

http://en.wikipedia.org/wiki/Remittances

Good luck in getting USD into Iran - I guess you haven't tried it or don't know any Iranis, right?

[justusranvier]

Does this forum have a facepalm smiley?

[moni3z]

Unless it already exists somebody needs to set up a major bitcoin (secure) exchange in Istanbul. Canada is full of Iranian students who can't get any money from back home because there's no money transfer existing that can do it. Iranian parents could walk into a local currency changer, deposit cash and then said exchanger uses the Istanbul banks to transfer money into the exchange to get bitcoins. Then they can send them to their kid in Toronto who can cash out locally avoiding all the black market high fees and just pay the white market high fees

Most of these kids just looking for small $1-5k transactions nothing major

[bytedisorder]

This a good idea. Our idiot politicians here in the US seem to forget that economic sanctions have been the cause of many wars.

[Ente]

Unless it already exists somebody needs to set up a major bitcoin (secure) exchange in Istanbul. Canada is full of Iranian students who can't get any money from back home because there's no money transfer existing that can do it. Iranian parents could walk into a local currency changer, deposit cash and then said exchanger uses the Istanbul banks to transfer money into the exchange to get bitcoins. Then they can send them to their kid in Toronto who can cash out locally avoiding all the black market high fees and just pay the white market high fees

Most of these kids just looking for small $1-5k transactions nothing major

Istanbul: Capital of Turkey
Tehran: Capital of Iran

The problem, of course, is how the Tehran' bank (account) gets bitcoins then. Exchanging Iranian Rial to USD seems to have horrible official exchange rates. If you want to exchange Rial to Bitcoin face-to-face, you need a working Bitcoin economy there. Just the same as "here", we are still a few steps away from that..
But then I don't know much about currency exchange and grey markets in such a situation. Surely you could buy gold for Rial, and exchange gold for bitcoins then. If the whole Iranian Bitcoin economy was centralized, with only one, two people dealing large Rial/gold/bitcoin sums, it would be possible to do. So, how is the current situation with US$ there?

Ente

[moni3z]

Unless it already exists somebody needs to set up a major bitcoin (secure) exchange in Istanbul. Canada is full of Iranian students who can't get any money from back home because there's no money transfer existing that can do it. Iranian parents could walk into a local currency changer, deposit cash and then said exchanger uses the Istanbul banks to transfer money into the exchange to get bitcoins. Then they can send them to their kid in Toronto who can cash out locally avoiding all the black market high fees and just pay the white market high fees

Most of these kids just looking for small $1-5k transactions nothing major

Istanbul: Capital of Turkey
Tehran: Capital of Iran

The problem, of course, is how the Tehran' bank (account) gets bitcoins then. Exchanging Iranian Rial to USD seems to have horrible official exchange rates. If you want to exchange Rial to Bitcoin face-to-face, you need a working Bitcoin economy there. Just the same as "here", we are still a few steps away from that..
But then I don't know much about currency exchange and grey markets in such a situation. Surely you could buy gold for Rial, and exchange gold for bitcoins then. If the whole Iranian Bitcoin economy was centralized, with only one, two people dealing large Rial/gold/bitcoin sums, it would be possible to do. So, how is the current situation with US$ there?

Ente

Lot's of news articles on how banks in Turkey still deal with Iran, they don't believe in sanctions. In fact Iran has a load of banks operating in Turkey and their ATM system works there. Iran is also full of currency exchangers where everybody is changing their rials into USD and other currency to hold since Rials are quickly becoming worthless. Makes sense these exchanger houses can just sell bitcoins to be traded to overseas family members

Though they are shutting down the currency traders again because they refuse to exchange using the government provided rate and instead use the market rate http://www.theglobeandmail.com/news/world/iranian-riot-police-storm-exchange-amid-currency-nosedive/article4584790/

[Spekulatius]

Unless it already exists somebody needs to set up a major bitcoin (secure) exchange in Istanbul. Canada is full of Iranian students who can't get any money from back home because there's no money transfer existing that can do it. Iranian parents could walk into a local currency changer, deposit cash and then said exchanger uses the Istanbul banks to transfer money into the exchange to get bitcoins. Then they can send them to their kid in Toronto who can cash out locally avoiding all the black market high fees and just pay the white market high fees

Most of these kids just looking for small $1-5k transactions nothing major

Istanbul Ankara FTFY  : Capital of Turkey
Tehran: Capital of Iran

The problem, of course, is how the Tehran' bank (account) gets bitcoins then. Exchanging Iranian Rial to USD seems to have horrible official exchange rates. If you want to exchange Rial to Bitcoin face-to-face, you need a working Bitcoin economy there. Just the same as "here", we are still a few steps away from that..
But then I don't know much about currency exchange and grey markets in such a situation. Surely you could buy gold for Rial, and exchange gold for bitcoins then. If the whole Iranian Bitcoin economy was centralized, with only one, two people dealing large Rial/gold/bitcoin sums, it would be possible to do. So, how is the current situation with US$ there?

Ente

@ all such ideas: I think the biggest problem may be that nobody wants to buy Rials right now, because they become virtually worthless in no time! Charly Shrem made a quick comment to this issue during his latest interview session on adam VS the man:
http://youtu.be/2BqpYbzZ3NI?t=32m5s

[MysteryMiner]

The sanctions against Iran are more of a speculation and political pressure anyway. World needs Iranian oil and other products. For some countries it is like going to hunger strike to make a shop owner lose customers lol. When Iran will get the nukes the attitude will be wholly different. Take a example of Russia doing all kinds of evil things in home and abroad. No sanctions against Russia at all.

[Ente]

Unless it already exists somebody needs to set up a major bitcoin (secure) exchange in Istanbul. Canada is full of Iranian students who can't get any money from back home because there's no money transfer existing that can do it. Iranian parents could walk into a local currency changer, deposit cash and then said exchanger uses the Istanbul banks to transfer money into the exchange to get bitcoins. Then they can send them to their kid in Toronto who can cash out locally avoiding all the black market high fees and just pay the white market high fees

Most of these kids just looking for small $1-5k transactions nothing major

Istanbul: Capital of Turkey
Tehran: Capital of Iran

The problem, of course, is how the Tehran' bank (account) gets bitcoins then. Exchanging Iranian Rial to USD seems to have horrible official exchange rates. If you want to exchange Rial to Bitcoin face-to-face, you need a working Bitcoin economy there. Just the same as "here", we are still a few steps away from that..
But then I don't know much about currency exchange and grey markets in such a situation. Surely you could buy gold for Rial, and exchange gold for bitcoins then. If the whole Iranian Bitcoin economy was centralized, with only one, two people dealing large Rial/gold/bitcoin sums, it would be possible to do. So, how is the current situation with US$ there?

Ente

Lot's of news articles on how banks in Turkey still deal with Iran, they don't believe in sanctions. In fact Iran has a load of banks operating in Turkey and their ATM system works there. Iran is also full of currency exchangers where everybody is changing their rials into USD and other currency to hold since Rials are quickly becoming worthless. Makes sense these exchanger houses can just sell bitcoins to be traded to overseas family members

Though they are shutting down the currency traders again because they refuse to exchange using the government provided rate and instead use the market rate http://www.theglobeandmail.com/news/world/iranian-riot-police-storm-exchange-amid-currency-nosedive/article4584790/

Whoops, sorry for implying you mixed up those cities then! :-)
Interesting, thanks for sharing those insights!

Istanbul Ankara FTFY  : Capital of Turkey
Tehran: Capital of Iran

Shame on me, thanks! :-)

@ all such ideas: I think the biggest problem may be that nobody wants to buy Rials right now, because they become virtually worthless in no time! Charly Shrem made a quick comment to this issue during his latest interview session on adam VS the man:
http://youtu.be/2BqpYbzZ3NI?t=32m5s

Hmm, I don't think that's a problem. It is the market rate, after all! It is way below the official rate, but it is the rate where people are buying Rial for. And we can assume they get their few % on there too.

Ente

[Arto]

Hmm, I don't think that's a problem. It is the market rate, after all! It is way below the official rate, but it is the rate where people are buying Rial for. And we can assume they get their few % on there too.

With an accelerating inflation rate currently estimated at more than 196%, you'd only buy rials if you could be sure that you could get rid of them pretty much immediately. In other words, the rial is a fool's trade at this point.

[Phinnaeus Gage]

Does this forum have a facepalm smiley?

[moni3z]

If you promise not to tell anybody (lol, derp)  the first confirmed transaction of paying cash in Tehran and receiving Bitcoins across the world worked out pretty good. A student last night on my campus called his mother in Iran to go to a local currency exchange and give the guy behind the counter USD and emailed instructions how to load an unnamed foreign bitcoin exchange (instructions provided by me, translated by the student). Currency guy in Tehran phoned his hawala network partner, as apparently they all have foreign partners, in that bitcoin exchange's country who bought the coins on their behalf and withdrew them directly to the student's wallet address in Canada (for a really awesome rate too, damn these shady currency hustlers are even savvy in the virtual money world)

Said student then turned around and sold them for cash in hand to a guy on campus using localbitcoin in just 1hr after his family paid in Tehran, which is a pretty awesome fast transfer from a country with zero money transmitting abilities and for a hawala guy who had no idea what bitcoin was but managed to fund and buy the coins anyways, and withdraw them to the correct wallet address. Word spread and now every Iranian student on campus is getting their family to go to this one store to get coins, and a girl told me the store maxed out the 24hr exchange limit before lunch just dealing with the few student's family members on my campus. There's serious potential in Iran. Now the student here has money for rent instead of wondering where the hell he was going to sleep in a month since our country cut off incoming transfers even from family members.

Note to fascist currency secret police in my country: I simply advised, did not participate or conspire in any actual money handling or "illegal violation of sanctions" which are bullshit sanctions anyways. I'm also using campus wifi, come at me bro. No billions were spent on exporting Iranian oil with bitcoins today, or terrorism. No banks were used in countries currently with sanctions against Iran unless you count the guy selling bitcoins locally as a bank

[bitcoinbear]

If you promise not to tell anybody (lol, derp)  the first confirmed transaction of paying cash in Tehran and receiving Bitcoins across the world worked out pretty good. A student last night on my campus called his mother in Iran to go to a local currency exchange and give the guy behind the counter USD and emailed instructions how to load an unnamed foreign bitcoin exchange (instructions provided by me, translated by the student). Currency guy in Tehran phoned his hawala network partner, as apparently they all have foreign partners, in that bitcoin exchange's country who bought the coins on their behalf and withdrew them directly to the student's wallet address in Canada (for a really awesome rate too, damn these shady currency hustlers are even savvy in the virtual money world)

Said student then turned around and sold them for cash in hand to a guy on campus using localbitcoin in just 1hr after his family paid in Tehran, which is a pretty awesome fast transfer from a country with zero money transmitting abilities and for a hawala guy who had no idea what bitcoin was but managed to fund and buy the coins anyways, and withdraw them to the correct wallet address. Word spread and now every Iranian student on campus is getting their family to go to this one store to get coins, and a girl told me the store maxed out the 24hr exchange limit before lunch just dealing with the few student's family members on my campus. There's serious potential in Iran. Now the student here has money for rent instead of wondering where the hell he was going to sleep in a month since our country cut off incoming transfers even from family members.

Awesome demonstration of the power of bitcoins.

[Spekulatius]

If you promise not to tell anybody (lol, derp)  the first confirmed transaction of paying cash in Tehran and receiving Bitcoins across the world worked out pretty good. A student last night on my campus called his mother in Iran to go to a local currency exchange and give the guy behind the counter USD and emailed instructions how to load an unnamed foreign bitcoin exchange (instructions provided by me, translated by the student). Currency guy in Tehran phoned his hawala network partner, as apparently they all have foreign partners, in that bitcoin exchange's country who bought the coins on their behalf and withdrew them directly to the student's wallet address in Canada (for a really awesome rate too, damn these shady currency hustlers are even savvy in the virtual money world)

Said student then turned around and sold them for cash in hand to a guy on campus using localbitcoin in just 1hr after his family paid in Tehran, which is a pretty awesome fast transfer from a country with zero money transmitting abilities and for a hawala guy who had no idea what bitcoin was but managed to fund and buy the coins anyways, and withdraw them to the correct wallet address. Word spread and now every Iranian student on campus is getting their family to go to this one store to get coins, and a girl told me the store maxed out the 24hr exchange limit before lunch just dealing with the few student's family members on my campus. There's serious potential in Iran. Now the student here has money for rent instead of wondering where the hell he was going to sleep in a month since our country cut off incoming transfers even from family members.

Note to fascist currency secret police in my country: I simply advised, did not participate or conspire in any actual money handling or "illegal violation of sanctions" which are bullshit sanctions anyways. I'm also using campus wifi, come at me bro. No billions were spent on exporting Iranian oil with bitcoins today, or terrorism. No banks were used in countries currently with sanctions against Iran unless you count the guy selling bitcoins locally as a bank

I dont get it. His mother spent USD(!) in such a complicated way for her son to aquire bitcoins? Why didnt he just go buy some on cavirtex.com himself?
Secondly, I think the biggest problem for bitcoin in Iran is, that the people cant get rid of their Rials. There is little incentive to trade USD for BTC. If they could however find a way to exchange Rials for BTC we would see some atomic bitcoin explosion in Iran even without western help

[smoothie]

Someone can't smuggle a flash drive or a CD/DVD into iran?

Make mass copies and start handing them out. Setup a way to broadcast information from nodes from inside iran (if firewall) to nodes outside.

[moni3z]

I dont get it. His mother spent USD(!) in such a complicated way for her son to aquire bitcoins? Why didnt he just go buy some on cavirtex.com himself?
Secondly, I think the biggest problem for bitcoin in Iran is, that the people cant get rid of their Rials. There is little incentive to trade USD for BTC. If they could however find a way to exchange Rials for BTC we would see some atomic bitcoin explosion in Iran even without western help

Lolz, the student in Canada had no money. His family used to send him regular payments for food/rent/ect until our retarded government clamped down on all transfers FROM Iran, so he needed to get money from Iran into his hands to buy food. All the Iranian students I know on campus told me their families changed savings into foreign currencies years ago as the Rial has always been shaky.

He's not the only student, there's thousands of students overseas that are cutoff from any money, and some are fucked because their family has no foreign currency reserves and Iran keeps shutting down the exchangers to prop up their now worthless paper
http://rabble.ca/news/2012/03/economic-sanctions-against-iran-affect-students-canada

[koin]

I think the biggest problem for bitcoin in Iran is, that the people cant get rid of their Rials.

where bitcoins are used for remittance transfers to family members back home, then the recipient would be looking for rials.  if this persists, these local currency exchanges will figure out how to buy and sell bitcoins themselves rather than simply directing a cash transfer to occur somewhere else for purchasing coins.

[bitcoinbear]

I dont get it. His mother spent USD(!) in such a complicated way for her son to aquire bitcoins? Why didnt he just go buy some on cavirtex.com himself?

In the beginning, the mother in Iran has USD, the student in a far away land has no money.

A couple hours later, the mother does not have the cash, but the student has USD which he can now use to buy his food and pay rent.

Bitcoins were just a part of the conduit bringing the money from the parent to the student, but can you think of another way to get money transfered so quickly?

[moni3z]

I dont get it. His mother spent USD(!) in such a complicated way for her son to aquire bitcoins? Why didnt he just go buy some on cavirtex.com himself?

In the beginning, the mother in Iran has USD, the student in a far away land has no money.

A couple hours later, the mother does not have the cash, but the student has USD which he can now use to buy his food and pay rent.

Bitcoins were just a part of the conduit bringing the money from the parent to the student, but can you think of another way to get money transfered so quickly?

Not just quickly, but cheaply, and the entire process avoided all banks except for the hawala guy in the unnamed country who deposited local money to the exchange. Iranian students here told me the only way to get money out of Iran is physically flying it out of the country or paying huge fees to these same hawala guys to send a wire transfers overseas, but they won't do it for less than $5k and giant fees so anything smaller is just not getting out. In this situation the guy here received $2500 CAD worth of coins and only paid $20 or so in middle man fees which I was shocked, thought it would cost a lot more

The guy who bought them here just paid regular gox spot price for them, I didn't ask what he wanted $2500 worth of bitcoins for but I'm assuming it has something to do with importing psychedelics off SR to sell on campus, so it was win all around: Iranian student can eat, the rest of us get some quality dutch acid