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Cryptomania in Iran: ‘Hamster Kombat’ App Soars Amid Economic Turmoil: Technology: Tech Times
From Quincy JonTech Times June 24, 2024 11:00 am EDT
Tehran taxi drivers, cyclists and pedestrians are addicted to the “Hamster Kombat” app amid a heat wave in early June in hopes of making money, a frenzy that underlines Iran’s economic woes ahead of presidential elections .
“Hamster Kombat” Shows a Country Grappling with the West sanctions, inflation and unemployment. According to a report by AP News, the app’s popularity stems from the promise of economic recovery following President Ebrahim Raisi’s helicopter crash in May.
Amir Rashidi, head of digital rights and security at Miaan Group, said Iranians who have heard about Bitcoin for years use this app out of optimism. It shows desperation.”
The Central Bank of Iran’s (CBI) digital rial pilot program on June 21 focused on Kish Island, a tourist attraction and free trade zone. This application allows customers to pay for goods and services using digital QR scanning, bypassing interbank regulations.
To meet economic demands, CBI promotes Iran’s digital economy and the efficiency of micropayments. However, public enthusiasm for “Hamster Kombat” reflects the grim financial condition, with prices of vital commodities rising and the rial depreciating.
Authorities say Hamster Kombat could be risky
According to Iranian deputy military chief Habibollah Sayyari, law enforcement officials have noted that the app is part of the West’s “soft war” against the Iranian theocracy. Authorities have also warned that the promise of quick fortune discourages work and business.
Ayatollah Nasser Makarem Shirazi, a 97-year-old Shiite cleric, called Bitcoin “the source of much abuse” and advised against using “Hamster Kombat” or other Bitcoin applications.
Despite these warnings, the app remains popular, pointing to Iranians’ economic woes that motivate them to seek financial stability elsewhere.
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In January, the Iranian bitcoin exchange Bit24.cash over 230,000 exposed personal data of consumers due to a configuration issue, as reported by Bitdefender. The leak included passports, user IDs, credit cards and written consents submitted by regulators.
Service configuration errors compromised user privacy and security. Bit24.cash, like other cryptocurrency exchanges, requires KYC to avoid fraud.
Iran’s digital currency to help boost the economy and micropayments
Recently, the CBI launched a test program for its central bank digital currency (CBDC), the digital rial. This measure aims to facilitate national micropayments.
According to Cointelegraph, banking customers and visitors to the island of Kish, a free trade zone in the Persian Gulf and popular vacation destination, can use the digital rial. Many countries do not require a visa to visit the receiving island 12 million people every year.
(Photo: ATTA KENARE/AFP via Getty Images)
Women get off a public bus at a bus stop in Tehran on June 24, 2024, ahead of the June 28 elections to replace President Ebrahim Raisi, who died in a helicopter crash.
Kish Island’s public rollout expands 2023 digital trial program. Users can pay for products and services by scanning a barcode with appropriate software and replacing cash and bank cards. According to the CBI, the digital currency does not require interbank payments, allowing for quick currency transfers and improving payment security.
The CBI stressed that the main objective of the digital currency is to boost Iran’s digital economy and increase micropayments. Other objectives include strengthening the country’s payment infrastructure, reviving electronic banknotes for small payments, introducing new payment technologies and controlling risks related to private money.
Iran has controlled its cryptocurrency mining business since 2018, but still bans Bitcoin payments. This ambivalent stance reflects national security concerns and the possibility that cryptocurrency will help Iran avoid US sanctions.
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