🚨Quick Fact: Iran makes first import order using crypto!
Is Iran planning to use cryptocurrencies to avoid US sanctions?
Iran has decided to use crypto-currencies to settle cross-border commercial dealings, as the government seeks alternatives to the US currency and the international banking system.
The chairman of the Iran Trade Promotion Organization (ITPO), Ali Reza Peymanpak, announced in a tweet on August 9 that the first formal import order utilizing cryptocurrencies had been placed “this week.”
Peymanpak, who is also a deputy minister of industry, mining, and trade, did not specify what commodities or services were purchased or with whom but stated the deal was worth $10 million.
He went on to predict that in the near future, the usage of cryptocurrencies and smart contracts will become “widespread in foreign trade” with some countries.
It comes in the wake of reports last month that Iran and Russia had launched a settlement mechanism utilizing their respective currencies to limit the usage of the dollar in bilateral trade.
The Central Bank of Iran banned cryptocurrency trading within the country in 2019. Due to the massive quantity of mining of crypto-currencies in the nation, the country’s energy network has at times been under tremendous strain, resulting in widespread blackouts.
However, the government allows bitcoin and other cryptocurrencies to be used for international trade in order to avoid US sanctions.
In January, Iran’s Mehr news agency claimed that an agreement had been reached between the ITPO and the country’s central bank to enable crypto-currencies to be used in cross-border trading, with the system expected to be operational “within the next two weeks.”
“These crypto-currencies and blockchain systems have many practical discussions in business affairs,” Peymanpak told Mehr in January. “If we neglect it, we will lose a major part of business opportunities.” He went on to say that “In our main markets, such as Russia, China, India and Southeast Asia, the use of crypto-currencies are popular.”
Although crypto-currencies may be advantageous for Iranians attempting to avoid sanctions, US officials are taking steps to crack down where they can.
The New York Times reported in July that the crypto-currency exchange Kraken was under federal investigation for allegedly allowing Iranian customers to purchase and sell digital tokens.
Binance, another exchange, has also been accused of processing deals by Iranian clients despite international restrictions.
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Info Source: Forbes, Reuters
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