Iran officially allows digital assets to be used for imports

On Monday, Iran’s Minister of Commerce revealed that regulations and logistics have been finalized to facilitate the use of cryptocurrencies in Iranian international trade.

The move comes nearly 3 weeks after it officially announced that it had completed $10 million in crypto-paid imports.

Iran approves cryptocurrency for global trade

Iran’s Trade Minister Reza Fatemi Amin said the country, which has faced US sanctions since 1979, over final rules on the use of cryptocurrencies for imports.

The Iranian minister revealed that all basic issues and logistics services, such as granting and granting licenses, and providing fuel and energy for mining operations, have been completed.

“By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries,” said Alireza Peymanbak, Iran’s deputy minister of industry, mining and trade.

On August 9, Peymanbak, who is also the head of the Iran Trade Promotion Organization (ITPO), announced that the country completed $10 million worth of cryptocurrency imports “this week.” He also indicated that digital assets and smart contracts will be used more widely.

He had said, “This week, the first official registration of the $10 million import order using cryptocurrency was successfully completed.”

Iran’s Pro-Cryptocurrency Moves

Preparations for using cryptocurrencies to pay import bills began last year when the Central Bank of Iran allowed local banks, currency swaps, and licensed miners to process import bills through cryptocurrency.

As of now, licensed miners operating in Iran account for about 4.5% of the total hash rate. It is among the top 5 countries in this regard and generates revenue from cryptocurrency in exchange for licensing fees and premiums on the power provider.

Back in January, the country also revealed that it plans to introduce a central bank digital currency without giving a specific timeline for when it will be launched. Senior CBI officials said cryptocurrencies are a solution to “stopping the growing financial instability around the world.”

crackdown on illegal mining

In 2019, the Central Bank of Iran (CBI) banned cryptocurrency trading. The move aims to curb the spread of mining activities that have affected the country’s electricity supply. Over the past year, Iran has launched several crackdowns on illegal miners, punishing them with fines, confiscation of machinery and even prison sentences.

Mining operations in the country were also closed during the summer and winter when the demand for electricity rose dramatically. However, these moves appear to be part of an overall state effort to regulate the mining industry in an effort to earn revenue.

The post that Iran officially approves the use of digital assets for imports first appeared on CryptoPotato.

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