Key Takeaways:
- The import order using crypto costs around $10M.
- By Sept use of crypto in foreign trade will be widespread, minster says.
LAGOS (CoinChapter.com) — In a remarkable development for the cryptocurrency industry, the Iranian government uses digital currency to conduct official importation transactions today.
The Middle-East country using cryptocurrency made the first import order which cost around $10 million, according to Reuters news agency. Notably, Iran opted for this payment option because of its lack of foreign currencies resulting from sanctions imposed on it by the United States.
Recall that the U.S. had imposed an almost total economic embargo on Iran, including a ban on all imports and those from the country’s oil, banking and shipping sectors.
Notably, the cryptocurrency used in the $10 million import transaction was disclosed. However, Alireza Peymanpak, Iran’s minister of Industry, Mine, and Trade, hinted that more such endeavors would follow suit.
“This week, the first official import order was successfully placed with #رمز_ارز worth 10 million dollars. By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.”
Peymanpak said.
Is Iran Embracing Cryptocurrency?
It is worth noting that Iran has not always been a crypto-friendly country. Last year, the government banned all bitcoin mining operations for more than four months over its electricity consumption. In December, the Iranian government also halted crypto mining operations, citing electricity blackouts during the winter.
It’s worth noting that 4.5% of all bitcoin mining occurs in Iran, partly due to the country’s cheap electricity. Following the ban on mining, law enforcement agents recently raided a factory in Tehran and confiscated 7,000 BTC mining machines.
Earlier this year, the authorities alerted they might increase the sanctions on illegal Bitcoin miners. Specifically, operators who use energy meant to reach businesses and households could go to prison.
However, as a result of the new development, Tehran, one of the region’s largest economies, might be on its way to embracing cryptocurrency technology. The country is embracing cryptocurrency to bypass U.S. sanctions and trade with other countries on the global scene.
Additionally, if Iran enacts favorable policies toward Bitcoin miners, it could earn millions of dollars that can be used to buy imports and lessen the impact of the U.S. sanctions.
Countries Adopting Crypto As Legal Tender
Meanwhile, it is worth noting that Iran is heading toward becoming another country that would adopt passed legislation to enable cryptocurrency to be used as legal tender. It is set to join the ranks of the Central African Republic (CAR) and El Salvador as crypto champion nations.
Recall that El Salvador adopted bitcoin as legal tender last year, although the project has been beset by public skepticism amid tumbling crypto prices. Moreover, the Central African Republic also became the first African state to make bitcoin legal tender.
Additionally, unlike El Salvador, CAR’s parliament voted unanimously to pass a bill legalizing bitcoin and other cryptocurrencies. Last month, the country also launched its own digital coin (Sango Coin).
