ZoneBitcoin EditorialThe Iranian government has just imported $10 million in cryptocurrency. The cryptocurrency used for this transfer has not been revealed. Likewise, we do not know the nature of the import in question.
This was the first time that Iran made an international payment using cryptocurrency. Iranian Deputy Minister of Industry, Mines and Trade Alireza Peyman-Pak said in a tweet dated August 9:
"At the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade."
This is a very important announcement for the country and for other countries in the region which was widely reported by the media. After the legalization of bitcoin in El Salvador and the launch of the first crypto state currency (Sangocoin) in the Central African Republic, cryptocurrencies are increasingly accepted by governments.
The country wanted to let the whole world know that Iran was in the process of generalizing the use of cryptocurrencies in the country, and in particular, for cross-border payments.
Circumvent international sanctions with cryptocurrencies
Iran has been hit by economic sanctions for decades. Moreover, before Russia entered into conflict with Ukraine, it was the most sanctioned country in the world. The majority of its imports come from China, the United Arab Emirates, Turkey and India.
However, this is not the first time that Iran has been “tolerant” towards cryptocurrencies. Since 2017, the government had regulated the bitcoin mining industry. Then, in 2020, the country amended its legislation to attract more mining companies to set up shop in the country. As of 2021, more than 30 business licenses have been issued to Iranian miners.
Mining of bitcoin (and other cryptocurrencies) from mining farms in Iran is then resold mainly to the Iranian central bank. It now has funds to pay for its international imports.
Thus, the recent payment of $10 million paid in cryptocurrencies comes – presumably – from mining farms installed in the country.
Increasing use of cryptocurrencies
In addition to cross-border payments, Iran is also considering creating its own digital currency (CBDC). This would be based on technology Hyperledger Fabric.
For Iran, the use of cryptocurrencies is also relevant to improve its existing unstable financial infrastructure.
