In a historic first, Iran has placed a $10 million import order with cryptocurrency.
Within Iran’s borders in 2019, cryptocurrency trading was prohibited.
According to Industry Mines and Trade Minister Reza Fatemi Amin, crypto may now be used in trade and imports in Iran. This green light is an attempt to sidestep the banking and financial restrictions imposed by the United States.
On Sunday, the government, according to Amin, approved the legislation enabling the use of cryptocurrencies like bitcoin and ether in place of traditional fiat currencies like the dollar and the euro. All the concerns relating to crypto-assets, including how to supply fuel and energy, and how to assign and award licenses were created, he stated.
Crypto to the Rescue
In a historic first, Iran has placed a $10 million import order with cryptocurrency, earlier this month. It was a trial run for a system that would eventually let the country transact in digital assets outside of the international monetary system. It helped commerce with nations that were also blocked by US sanctions.
Deputy Iranian Commerce Minister and Head of Iran’s Trade Promotion Organization Alireza Peymanpak predicts that “By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries.”
It has been a challenging period for Iran’s cryptocurrency industry. Within Iran’s borders in 2019, cryptocurrency trading was prohibited by the country’s central bank. Bitcoin and other cryptocurrencies, however, were nevertheless permitted by the government as a means of payment for imported goods.
However, the sanction-evading permission gives Iran a way around the devastating US sanctions. As a result of the national currency’s devaluation due to the sanctions, cryptocurrency trading has exploded in popularity there.