Friday, September 30, 2022

Iran Uses Cryptocurrency as Payment for its Import Order

Due to the scarcity of foreign currency caused by sanctions placed on the nation, Iran has looked the way of cryptocurrency as a payment option.

The Iranian government yesterday carried out its first import order with payments in crypto. The news was reported by the local media. According to the reports, the transaction is worth $10 million, although the report did not say what cryptocurrency was used for the transaction.

The $10 million trade is the first of many to come for the country.

According to Alireza Peyman-Pak, head of the nation’s Trade Promotion Organization, digital currencies, and smart contracts will be common means of payment for foreign trade going forward.

Recall that Iran amended its laws in 2020 to allow the use of cryptocurrency in funding the import of goods.

Due to its cheap electricity, Iran has developed to become a choice center for Crypto miners. The nation accounts for 4.5% of the world’s mining activities. These mined coins are now used for import payments.

The nation has since maintained a stiffer stance on mining activities in the nation. Back in 2021, it banned crypto mining operations for four months in order to preserve the stability of its network.

Last year, it also cracked down on local miners over energy use confiscating 7000 Bitcoin (BTC) mining machines in the process. This method of payment has helped the Middle East nation bypass trade embargoes placed on it. 

Nations Adopting Cryptocurrency

Notably, the Iranian $10 million trade in crypto payment is the first of its kind from any government. Other nations facing sanctions could also adopt this model to carry out their foreign trade.

North Korea, another US-sanctioned nation, has allegedly been funding its weapons program with illicit funds from its state-backed hacker group.

In April, the Central African Republic through its parliament passed a law that allows users to adopt cryptocurrency as a legal tender. The central African nation has also launched a crypto hub dubbed Project Sango designed to attract crypto enthusiasts all over the world.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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