The Central Bank of Iran (CBI) plans to allow the use of cryptocurrencies for international trade in the Middle Eastern country. According to a local report, the CBI has reached an agreement with the Iranian Ministry of Commerce to integrate crypto payments for Iranian businesses.
Iranian forex market uses crypto
According to report According to the Mehr news agency, the Iranian Ministry of Commerce has reached an agreement with the Central Bank of Iran with the aim of allowing the use of cryptocurrencies for international settlements. Iranian Deputy Minister of Industry and Trade and head of Iran’s Trade Promotion Organization Alireza Peyman-Pak noted that the deal is expected to be implemented within the next two weeks.
The report quotes the official as saying:
“We are fine-tuning the working mechanism of the system. This should provide new opportunities for importers and exporters, who will be able to opt for the use of cryptocurrencies in their international transactions. »
Besides allowing the use of “private” cryptocurrencies, the Deputy Minister also revealed that the Central Bank is also working on a national cryptocurrency, a Central Bank Digital Currency (CBDC). He pointed out that crypto and blockchain technology has advantages that the country cannot ignore. Indeed, cryptocurrency is increasingly accepted and is not controlled by any entity. He pointed out that Iran’s trading partners, including Russia, China, India and Southeast Asia “commonly use cryptocurrencies”.
“All economic actors can use these cryptocurrencies […] Since the cryptocurrency market is done on credit, our economic actors can easily use it and use it widely. », said Peyman-Pak
Authorities continue to push back on cryptocurrency-related activities, but adoption among Iranians is growing
In some ways, the Iranian government seems very supportive of cryptocurrencies. Iran has legalized the mining of bitcoins in 2019. The country has also implemented a policy that allows financial institutions to use bitcoins mined in the territory of the country for transactions.
Besides, the adoption of digital assets has increased among the citizens of the country. According to a recent survey, up to 12 million Iranians hold various cryptocurrencies. Iranians have turned to cryptocurrency to help them fight against heavy sanctions from the United States that have affected their economy on several occasions and in many sectors.
However, the cryptocurrency industry still faces challenges in the country. One of the main challenges is that there are no concrete regulations when it comes to cryptocurrency. This has affected both bitcoin miners and traders.
the mining bitcoin has been banned twice in 2021 for hoarding energy for home use, as it is often blamed as the reason for many power shortages. The second ban which was imposed last month will last until March this year.
Iran continues its interaction with cryptocurrency. Even though the country does not have clear and precise crypto regulations, officials are aware of current trends and try to keep up with developments in the crypto economy. Should we expect even more massive adoption of cryptocurrencies nationwide in this Middle Eastern country?
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