Iran starts first official trading based on Bitcoin
8/9/2022, 04:23 PM
The United States has been imposing sanctions on Iran for many years, severely hurting the Iranian economy. In order to bypass these sanctions, the Islamic Republic is now set to conduct its first import business using cryptocurrency.
According to official reports, Iran placed its first import order using cryptocurrency this week. This was reported by the semi-official agency Tasnim. The order is valued at ten million dollars. It is not known which digital currency will be used in the transaction.
By using digital assets, Iran is trying to bypass the dollar-dominated global financial system. This would allow them to conduct business with other countries that are also restricted by US sanctions, such as Russia.
However, the prices of cryptocurrencies such as Bitcoin fluctuate very strongly, making them an unreliable form of payment. For the cryptocurrency market, the current development is two-sided. On the one hand, market participants usually welcome acceptance by state authorities. However, the case of Iran is likely to be another argument for Western governments to further regulate cryptocurrencies, which could lead to a ban on transactions.
In recent years, an increasing number of countries have begun to experiment with cryptocurrency technology as a way to boost their economies. Iran is one of the largest economies yet to embrace cryptocurrency, but this may soon change.
Last year, a study found that 4.5% of all bitcoin mining was taking place in Iran, partly as a result of the country's cheap electricity. The mining of cryptocurrency could help Iran earn hundreds of millions of dollars that can be used to buy imports and lessen the impact of sanctions.
According to official reports, Iran placed its first import order using cryptocurrency this week. This was reported by the semi-official agency Tasnim. The order is valued at ten million dollars. It is not known which digital currency will be used in the transaction.
- The order is valued at $10 million
- The United States has imposed a hasty economic embargo on Iran
- use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries
- In 2019, the government legalized crypto mining in the country
By using digital assets, Iran is trying to bypass the dollar-dominated global financial system. This would allow them to conduct business with other countries that are also restricted by US sanctions, such as Russia.
However, the prices of cryptocurrencies such as Bitcoin fluctuate very strongly, making them an unreliable form of payment. For the cryptocurrency market, the current development is two-sided. On the one hand, market participants usually welcome acceptance by state authorities. However, the case of Iran is likely to be another argument for Western governments to further regulate cryptocurrencies, which could lead to a ban on transactions.
By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries- Iran Ministry of Industry, Mine and Trade
In recent years, an increasing number of countries have begun to experiment with cryptocurrency technology as a way to boost their economies. Iran is one of the largest economies yet to embrace cryptocurrency, but this may soon change.
Last year, a study found that 4.5% of all bitcoin mining was taking place in Iran, partly as a result of the country's cheap electricity. The mining of cryptocurrency could help Iran earn hundreds of millions of dollars that can be used to buy imports and lessen the impact of sanctions.