Economic sanctions against the Islamic state have forced Iran to start using crypto as a medium of payment for importing goods
Iran makes the first import with crypto, plans widespread use by end of September. Source: shutterstock.com
After decades of economic sanctions, Iran has turned to crypto for international deals. The country’s Deputy Minister of Industry, Mine & Trade Alireza Peyman-Pakits reported the first international import order using $10 million worth of cryptocurrency.
Although the official did not disclose any details about the cryptocurrency used or the deal itself, Peyman-Pak said the crypto settlement opens new horizons for future international trades. Namely, the country plans to widely use cryptocurrencies and smart contracts in foreign trade with target countries by the end of September.
Until the Russian full-scale invasion of neighbouring Ukraine, Iran was the most sanctioned country in the world. Looking for a solution, the Islamic nation was ready to embrace cryptocurrencies as early as 2017. Besides, in October 2020, Iran amended previously issued legislation to allow cryptocurrency to be used for funding imports.
Furthermore, in June 2021, the Iranian Trade Ministry issued 30 operating licenses to Irani miners to mine cryptocurrencies, which then must be sold to Iran’s central bank. Today the country is using those mined coins for import payments. Most of the Iranian imports come from China, the United Arab Emirates (UAE), India, and Turkey.
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