Iran was the most sanctioned country till February 2022. However, on August 9th 2022, the Iranian nation made its first official crypto-funded import worth $10 million.
Iran’s Deputy Minister of Industry, Mine & Trade Alireza Peyman-Pak quoted on Twitter about the $10 million worth of import orders placed using cryptocurrency. The minister did not mention which cryptocurrency was used in the transaction or the goods involved in the import. However, Peyman Pak said, “By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries.”
Iran receives most of its imports from China, the United Arab Emirates (UAE), India, and Turkey. This order is the first step toward bypassing the dollar-dominated global financial system and starting to trade with countries suffering from the United States sanctions, such as Russia.
The United States imposed an almost total economic ban on Iran, including a ban on all imports, especially those from the country’s oil, banking and shipping industries.
Because of the availability of cheap electricity in Iran, a report in 2021 highlighted that 4.5% of all Bitcoin mining was done in Iran. This can be an advantage for the Iranian government and people to earn millions of dollars via mining cryptocurrency and using the same for imports, which will indirectly reduce the impact of sanctions.
The Iranian nation has been positioned to embrace cryptocurrency since 2017. In the year 2020, Iran made amendments to the law to allow cryptocurrency to be used in imports. Moreover, in 2021 the government of Iran issued 30 operating licenses to Iranian miners, asking them to mine cryptocurrency and then sell it to the Central bank of Iran.
Furthermore, Iran was also looking for an opportunity to introduce Central bank digital currency (CBDC). CBDC is built on the Hyperledger Fabric protocol, which can be used to improve Iran’s financial system.
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