Iran makes first import order using cryptocurrency

DUBAI (REUTERS) – Iran made its first official import order using cryptocurrency this week, the semi-official Tasnim agency reported on Tuesday (Aug 9), a move that could enable the country to circumvent United States sanctions that have crippled its economy.

The order, worth about US$10 million (S$13.8 million), was a first step towards allowing Iran to trade through digital assets that bypass the dollar-dominated global financial system and to trade with other countries similarly limited by US sanctions, such as Russia.

Tasnim did not specify which cryptocurrency was used in the transaction.

“By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries,” an official from the Ministry of Industry, Mine and Trade said on Twitter.

The US imposes an almost total economic embargo on Iran, including a ban on all imports.

Teheran is one of the largest economies yet to embrace cryptocurrency technology, born in 2008 as a payments tool aimed at eroding governmental control over finance and economies.

Last year, a study found that 4.5 per cent of all Bitcoin mining was taking place in Iran, partly as a result of the country’s cheap electricity.

The mining of cryptocurrency could help Iran earn hundreds of millions of dollars that can be used to buy imports and lessen the impact of sanctions.

Cryptocurrencies such as Bitcoin are highly volatile, making them impractical for large-scale payments.

The European Union on Monday said it put forward a “final” text to revive the 2015 Iran nuclear deal, as four days of indirect talks between US and Iranian officials wrapped up in Vienna.

Under the 2015 agreement, Iran curbed its nuclear programme in return for relief from US, EU and United Nations sanctions. But then US President Donald Trump reneged on the nuclear deal in 2018 and restored harsh US sanctions, prompting Teheran to start violating the agreement’s nuclear limits about a year later.

The Central African Republic, one of the world’s poorest countries, has also embraced crypto. It became the first African state to make Bitcoin legal tender in April, and last month launched its own digital coin.

El Salvador last year also adopted Bitcoin as legal tender, though the project has been beset by public scepticism amid tumbling crypto prices.

Disclaimer: This report is automatically generated from worldwide news services. NTN is not responsible for its content and does not moderate it.

Be the first to comment

Leave a Reply

Your email address will not be published.