Iran reportedly registered its first import order bought via cryptocurrency.
The Iranian newspaper Tasnim reported today that the cryptocurrency amount is worth $ 10 million.
The outlet omitted numerous details about the order, including what it is intended for and by whom, as well as what cryptocurrency it was used for.
Cryptocurrencies will be used extensively in Iran for foreign trade, according to Tasnim, who is linked to Iran’s elite Islamic Revolutionary Guard Corps.
Because matter: The order represents a growing acceptance of cryptocurrencies by the Iranian leadership. Iranian authorities have been slow to adopt the cryptocurrency. In 2018, the Central Bank of Iran actually forbidden the important cryptocurrency Bitcoin along with other unspecified ones. However, in 2020, the bank decided to allow the use of cryptocurrency for import financing due to pressure on Iran’s use of hard currencies.
Iran is subject to numerous harsh sanctions from the United States and these hinder Iran’s efforts to conduct trade and access the global financial system. Dealing with the Iranian energy industry is illegal under US law, for example. Iran is also prohibited from using the SWIFT system for financial transactions.
Cryptocurrency could help Iran evade these sanctions. Cryptocurrency exchanges allow for financial transactions without the use of an intermediary, such as a bank. Indeed, there has been a surge in crypto transactions following the announcement of sanctions on Russia in response to the invasion of Ukraine this year.
However, the cryptocurrency industry may be too small to handle the amount of money a country trades. Cryptocurrencies are also not widely used yet and its blockchain is publicly accessible. This makes it less plausible to use cryptocurrencies to evade sanctions to a significant extent, according to the Carefin mustache research center in Italy.
Learn more: The Iranian crypto scene is also tied to electrical issues. There have been widespread power outages in Iran in recent years, and this unleashed protests last year. In June, the Iranian government cut off electricity to cryptocurrency mining centers due to increased demand for electricity during the hot summer.
