The use of cryptocurrency for imports into Iran has been sanctioned by the Ministry of Industry, Mines, and Trade, making it available to Iranian firms. This occurs despite the fact that trade barriers between countries persist.
Commerce minister Reza Fatemi Amin reportedly said that the country had approved detailed legislation detailing the use of cryptocurrencies for trade and the provision of fuel and electricity to Bitcoin (BTC) and crypto miners in the country.
On August 28th, at an auto expo, Amin revealed the new rules, just one week after the country placed its first ever import order for vehicles totaling $10 million, paid for entirely in cryptocurrency. The Iranian business minister has previously predicted that by September 2022, bitcoin and smart contracts will be widely used in international trade. Businesses in Iran can now utilize cryptocurrency to import goods without being subject to the international community’s sanctions against the country.
Following this shipment’s use of bitcoin as payment, Iran’s Import Association called for stricter regulation to protect domestic businesses and importers from inconsistent policies.
According to the minister, the new law addresses every facet of cryptocurrency, from the licensing process to the supply of energy for mining operations.
Rather than using dollars or euros, local businesses in Iran may soon be able to pay for automobiles and other imported goods using bitcoin.
Iran has been effectively cut off from the global banking system as a result of international trade sanctions enacted in reaction to opposition to the country’s nuclear program.
Due to the fact that public blockchains like Bitcoin and Ethereum are not governed by any centralized authority, Iran has shifted its focus to adopting virtual currencies as a means of resolving and maybe evading import restrictions.
Thirty crypto mining facilities in Iran were granted operating licenses by the Ministry of Mines, Industry, and Trade in June 2021, and over 2,500 applications for further mining operations were granted at the same time. In the months that followed, the government cracked down on illegal mining activity and even enforced a mining ban for three months to ease pressure on the national grid.
Crypto Sinister Side
Although there are many advantages to cryptocurrencies and the technology behind it, and it has disrupted financial markets around the world to varying degrees, it has yet to reach its full potential. However, the powers that be frequently employ this traditional currency alternative, which is notoriously difficult to exchange, for malicious ends.
As is common information, the North Korean government uses money from hacker organizations that are supported by the state to maintain its iron hand and tyrannical reign over the people of the communist enclave.
International sanctions may soon be rendered worthless due to Iran’s expertise in the crypto domain and the authorization of its usage for imports to circumvent international limits. Governments everywhere are aware of this trait of cryptocurrencies, thus we can expect a crackdown on decentralized finance and the introduction of CBDCs, which may eventually replace the current crypto-economic model.