According to Reza Fatemi Amin, the Iranian Minister of Industry, Mines, and Trade, the government’s new crypto law will allow Iranian enterprises to import products using crypto instead of the U.S. dollar or the euro.
Iran Enables Crypto Payments Internationally
Iran is proceeding with its intentions to facilitate Bitcoin cross-border payments.
Reza Fatemi Amin, the Iranian minister of industry, mines, and trade, declared on Sunday at an expo for the automobile sector in Tehran that the government has enacted a complete and precise law to regulate the use of cryptocurrencies in commerce.
Amin claimed that all crypto-asset-related difficulties, such as providing fuel and energy for mining and assigning and awarding licenses, have been addressed. The regulation, drafted by Iran’s Ministry of Industry and central bank, would let imports be paid for using cryptocurrency. The rule will apply to local firms, banking institutions and industry leaders.
Previously, Iran relied entirely on the U.S. dollar and the euro for international transactions. Since 1979, the United States has imposed sanctions on Iran; in 2006, Iran’s unwillingness to suspend its uranium enrichment program caused the sanctions to become among the worst in the world.
Bitcoin coins pictured with euros and Iranian rials (illustrative photo)
Iran International, a local daily, anticipates that cryptocurrency would be used to bypass sanctions and facilitate commerce with other banned nations, such as Russia. Russia’s central bank has already shown its openness to cryptocurrency for foreign transactions.
Alireza Peyman-Pak, the Vice Minister of Industry, Mines, and Trade for Iran, announced on August 9 that the nation had completed its first import using cryptocurrency. The order’s value was $10 million. According to Peyman-Pak, the usage of cryptocurrencies and smart contracts will be common in international trade with target nations by September.
Iran has attracted Bitcoin miners owing to its inexpensive power. In 2019, the Iranian government officially legalised Bitcoin mining, stipulating that mining machines must be shut down during peak usage hours. The policy resembles the one established by Texas in relation to its mining sector.