Iran, which is exposed to economic sanctions from the USA, has prepared a legal regulation that paves the way for the use of Bitcoin and other cryptocurrencies in international trade.
Iran's central bank and the Ministry of Industry, Mines and Trade have agreed on a regulation that will allow local merchants to start using cryptocurrencies for foreign trade deals.
According to the information reported by Iran-based Mehr News Agency at the beginning of the week, it was stated that crypto currencies, especially Bitcoin , can be used in imports and exports in Iran against international sanctions.
EXPLANATION FROM THE MINISTRY
Alireza Peyman-Pak, Iran's Deputy Minister of Industry, Mining and Trade and Head of the Iran Trade Development Organization (TPO), announced that the new payment mechanism will be completed "within the next two weeks".
As Peyman-Pak reports, this system will provide new opportunities for importers and exporters to use cryptocurrencies in their international deals. Peyman-Pak also stated that one should not ignore the economic and commercial opportunities in the crypto industry.
INTENSIVE ATTENTION TO CRYPTO IN IRAN
The main purpose of using cryptocurrencies in international trade is thought to be to circumvent sanctions.
Iran will use cryptocurrencies, especially Bitcoin, in order to overcome the international sanctions it is exposed to and to encourage economic activity in the next period. Iran is one of the countries with the most cryptocurrency mining in the world.
Iran also sees cryptocurrencies as an area of economic activity. Iran, where there is a serious embargo on trade, is trying to generate economic income for the country with crypto mining. Currently, 4.5 percent of crypto mining in the world is done from Iran. This rate means that Iran has created a serious crypto mining industry. Iran is one of the 7 countries that produce the most crypto money in the world with this rate.
ALTERNATIVE TO EMBARGOS
The economic sanctions, including the long-standing commercial and financial penalties applied by the USA to countries such as Cuba, Iran and Venezuela, seriously threaten the economies of the countries.
Many countries are looking for a way to use cryptocurrencies to circumvent sanctions. Countries such as Venezuela and Cuba have also made various official regulations regarding cryptocurrencies before.
In a statement made by the US Treasury Department last September, it was stated that crypto assets have the potential to reduce the impact of sanctions.
In the report on the US sanctions, it was stated that the restrictions increased almost 10 times in the last 20 years. While there were only 912 sanctions in the early 2000s, it was stated that 9,421 sanctions were current this year, and it was announced that many countries where these sanctions were applied were using crypto assets in their trade with other countries.
The report also warned that serious risks could arise if the use of new payment alternatives increases and digital payment systems, which have the potential to weaken the strength of the dollar, are not brought under control.