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Iran Will Allow Cryptocurrencies To Be Used In International Settlements

iran-crypto

As per local media, Iranian enterprises would be permitted to use cryptocurrency in payments with partners in other nations. The Central Bank of Iran (CBI) and the Ministry of Industries, Mining, and Trade have struck an agreement to that effect. According to the Financial Tribune, Alireza Peyman Pak, the head of Iran’s Trade Promotion Organization, stated:

“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.”

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Pak, who is also deputy minister of trade, took to social media to share details about the inaugural meeting of a combined foreign exchange working group between his department and the CBI, according to the Iranian news agency IBENA. The parties agreed to a variety of measures, including the use of the cryptosystem, to help Iran’s foreign commerce.

According to a follow-up report, the Trade Ministry will prepare a plan for the use of locally generated cryptocurrencies and coins acquired by private enterprises to pay for the import of products within two weeks. The Iranian Central Bank is the source of the initial proposal.

Pak stressed that cryptocurrencies and blockchain technologies have a wide range of applications and that if Iran ignores them, it will miss out on business prospects. “In some of our target markets, especially in countries such as Iraq, Afghanistan or Pakistan, there may be restrictions on using cryptocurrencies, but in our major markets such as Russia, China, India and Southeast Asia, using cryptocurrencies is common,” he elaborated.

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Apart from mining, which became legal in 2019, Iran’s crypto market is entirely uncontrolled. The Central Bank of Iran (CBI) approved the use of domestically issued digital currency by domestic banks and money exchangers to pay for imports into the sanctioned country in April. Authorities in Tehran, on the other hand, have been cracking down on cryptocurrency trade and payments in the country.

According to a recent estimate, up to 12 million Iranians own cryptocurrency. Some officials have argued that restrictive measures will drive innovation underground. Iranian fintechs warned in May that restrictions would deny the country of prospects, pointing out that local enterprises have managed to circumvent the economic ban via cryptocurrency transactions.