With many countries going big on cryptocurrencies, Iran seems to be taking a similar stance. According to local media reports, on 11 January 2022, the country’s businesses will be permitted to use cryptocurrency as a mode of payment in international settlements.
Alireza Peyman-Pak, the head of the Trade Promotion Organisation (TPO) of the country said that, in accordance with the Central Bank of Iran (CBI) and the Ministry of Industries, Mining, and Trade, hereon, the CBI crypto platform will be linked to the Comprehensive Trade System. This hook-up allows businesses to make use of tokens to settle payments to foreign partners. He added,
“We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptos in their international deals.”
This announcement was made just a few days after Alizera Peyman-Pak’s statement on expert commodities barriers. On 30 December 2021, it was reported that Peyman-Pak’S organization was seriously pursuing the removal of barriers in the way of maritime transportation of export commodities. To sum it up, this method of payment, through digital assets, could be used to reduce the chances of suppliers being punished by the U.S because of the penalties imposed on Iran.
Iran bullish on crypto?
The Gulf nation had to force shutdown crypto mining in the country, in May 2021, due to the extreme rise in temperature during summer which took a toll on the nation’s power grid. With the hottest months of the year behind them, the Iranian government had officially legalized mining for cryptocurrency for licensed operators in October 2021.
During the four-month ban, authorities had conducted many raids to track down crypto miners all over the country. The permission granted for the crypto miners to get back online is only restricted to those operating legally. The use of household electricity to mine for Bitcoin (BTC) and Ethereum (ETH) and others is still not legal. Those miners that have not abided by the law have been found to face heavy fines.
Digital assets have had the pleasure of growing popularity in the Islamic Republic, with up to 12 million Iranians holding one or the other token. Iran seems to be upping its crypto game with its current move.