Iran approves the usage of crypto for importation

The government of Iran has officially adopted the use of crypto for its importation. The country’s Industry, Mines and Trade Minister, Reza Fatemi Amin, made this known on Monday. With this approval, Iran intends to evade the US’s sanctions placed on its finance and banking sector.

Transactions regarding importation into Iran will now be completed using crypto instead of the dollar and euro. According to Amin, the conclusion was reached by Iran’s authority on Sunday. He further said that “all the issues related to crypto-assets, including how to provide fuel and energy,  and how to assign and grant licenses were devised.”

Iran carried out its first official importation through crypto this month to sample the initiative. The debut crypto importation is worth about $10 million. The sole aim of this initiative is to allow Iran to trade through digital assets that evade the dollar-dominated global financial system. Also, it will enable the country to trade with other countries, such as Russia, which is constrained by US sanctions.

Iran maintains an intricate relationship with crypto. This connection has helped the country conceal different trades barred by the US and other European sanctions. In 2019, Iran’s  Central Bank prohibited crypto trading in the country. The Iran government, however, allowed crypto assets like bitcoin to be used to pay for importation.

According to Iran Trade Promotion Organization (TPO) leader, Deputy Trade Minister Alireza Peymanpak, crypto, and smart contracts will be widely used before the end of September. This, according to him, will be used in exploring foreign trading with targeted regions.

Peymanpak is optimistic that using cryptos and smart contracts will soon become “widespread in foreign trade” with some countries. 

Ban on crypto trading within Iran

Iran’s apex bank prohibits crypto trading, citing mining as a threat to its electricity network. However, the ban did not restrict the usage of cryptos for international trading.

Fast forward to January 2022, reports confirmed that the ITPO struck a deal with Iran’s central bank to allow cryptos as an instrument of cross-border trading. At that time, ITPO stated the system would be up and running within the next two weeks.

Reacting to ITPO’s deal, Peymanpak stated that cryptos and blockchain have many practical discussions in business affairs. According to him, Iran will lose a major part of business opportunities if crypto is neglected. He further stated that cryptos are now widespread in global markets.

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