This strategy can help the Islamic Republic to evade sanctions.
The Iran Trade Promotion Organization has reported that this week it has successfully carried out the first official import order that has been paid with cryptocurrencies and for a value of 10 million dollars, reports the agency of Iranian news Tasnim. At the end of September, the use of cryptocurrencies and smart contracts will become widespread in foreign trade with other countries.
This strategy would allow the Islamic Republic to circumvent the sanctions imposed by the United States, reports Reuters. Iran could use cryptocurrencies to facilitate trade by bypassing the global financial system controlled by the US dollar.
“The first official import order using cryptocurrencies was successfully placed this week and for a value equivalent to 10 million dollars. By the end of September, the use of cryptocurrencies and smart contracts will become widespread in foreign trade with the target countries,” tweeted Alireza Peyman Pak, the country’s deputy minister of Industry, Mining and Commerce and head of the Iran Trade Promotion Organization (ITPO).
The United States maintains a near total economic embargo on Iran that includes a ban on all imports into the country including in the oil, banking, and shipping sectors.
Reuters also notes that 4.5% of all bitcoin mining occurred in Iran, in part due to mining bills. cheap electricity in the country. Cryptocurrency mining could help Iran earn hundreds of millions of dollars which would then allow goods to be imported into the country, thus lessening the impact of sanctions. However, cryptocurrencies like bitcoin are highly volatile, making them impractical for large scale payments.