Iran will allow the use of cryptocurrencies for international transactions

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The authorities of the Islamic Republic of Iran are going to create a platform where local companies can pay for exports and imports in digital currencies.

The Central Bank of Iran (CBI) has reached an agreement with the Iranian Ministry of Industry and Trade to create a platform based on the cryptocurrency platform of the Central Bank and the government’s Integrated Trading System. The platform should allow companies to pay in cryptocurrency with foreign partners.

The head of the Iranian Organization for the Promotion of Trade (OPT), Alireza Peyman-Pak, said that almost everything is ready for the integration of the state crypto platform and the trading system, and soon it will be possible to conduct the first transactions:

“We are finalizing the mechanism of the site. It should provide importers and exporters with new opportunities for international transactions. “

The use of cryptocurrencies, Alireza Peyman-Pak explains, makes it less likely that importing companies will be sanctioned. The United States maintains an almost complete economic embargo against Iran, including a ban on all imports, including for companies in the oil, shipping and banking sectors of the economy.

It is for this reason that the Iranian government decided to switch to settlements in bitcoins to maintain the volume of international trade. This step is seen as a way to overcome the economic crisis in the country, says Steve H. Hanke, professor of applied economics at Johns Hopkins University.

Iran has a complicated relationship with the crypto industry. In December, the country’s authorities suspended the work of licensed mining companies to avoid an energy crisis. With the cold snap in the region, the volume of electricity consumption increased, which led to voltage surges in the network and accidents on the lines. In November, the head of the local blockchain association (IBA), Abbas Ashtiani, said local regulators were not qualified to create an effective regulatory framework. The IBA was soon disbanded, replaced by the Iranian Blockchain and Cryptocurrency Association (IBCA), which began operating under the oversight of the Iranian Chamber of Commerce, Industry, Mining and Agriculture (ICCIMA).

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