Iran Allows Trading and Imports Using Crypto to Avoid Sanctions

Iran Commences CBDC Pilot Dubbed ‘Crypto Rial’
  • Iran has placed a $10 million import order with cryptocurrency in a historic first.
  • Iran’s borders remain closed to cryptocurrency trading in 2019.

Iran officially allows the use of cryptocurrency in trade and imports, according to Minister of Industry, Mines, and Trade Reza Fatemi Amin. 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 placed a $10 million import order with cryptocurrency, earlier this month. It served as a test run for a system that would eventually permit the nation to conduct digital asset transactions outside of the global monetary system. It facilitated trade with countries that were also subject to 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 wide use in foreign trade with target countries.

Recently, the cryptocurrency market in Iran has faced some difficulties. As a result, the central bank of Iran prohibited cryptocurrency trading within its borders in 2019. Still the government granted permission to use of cryptocurrencies as a payment method for imported goods.

However, Cryptocurrency trading has become extremely popular as a result of the devaluation of the domestic currency driven by the sanctions.

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A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.