Iranian authorities are preparing to allow the use of cryptocurrencies for international settlements. According to local media reports, central bank and government officials have approved the adoption of a digital currency mechanism in the field of foreign trade.

Businesses in Iran are able to use cryptocurrencies to pay foreign partners

According to local media reports, Iranian companies will be allowed to use cryptocurrencies in settlements with partners in other countries. The Central Bank of Iran has reached an agreement for this (CBI) and the Ministry of Industry, Mines and Trade. The Financial Tribune quoted Alireza Peyman Pak, head of Iran’s trade promotion organization, as saying:

We are finalizing the mechanics of how the system works. This should open up new opportunities for importers and exporters to use cryptocurrencies in their international transactions.

Pak, who is also deputy trade minister, provided details on social media about the first meeting of the joint foreign exchange working group between his ministry and the CBI, according to Iranian news agency IBENA. The participants approved a series of measures to facilitate Iran’s foreign trade, including the adoption of encryption mechanisms.

A follow-up report quoted the same official as saying that within two weeks the trade ministry would develop a plan to use locally mined cryptocurrencies and coins acquired by private companies to pay for the importation of goods. The original proposal came from the Central Bank of Iran.

Pak emphasized that cryptocurrencies and blockchain systems have many practical applications, and if Iran ignores them, it will lose business opportunities. “In some of our target markets, especially in countries such as Iraq, Afghanistan or Pakistan, the use of cryptocurrencies may be restricted, but in our main markets such as Russia, China, India and Southeast Asia, the use of cryptocurrencies is common,” He said elaboration.

Apart from miningLegalized in 2019, Iran’s crypto space remains largely unregulated. In April, the Central Bank of Iran (CBI) Authorize Domestic banks and money changers use locally minted digital coins to pay for imports into sanctioned countries. However, authorities in Tehran have been tracking crypto transactions and payments in the country.

According to a recent report, cryptocurrencies are growing in popularity in the Islamic Republic, with as many as 12 million Iranians holding one coin or the other. estimate. Some officials have be opposed to Restrictive policies, insisting these could push innovation underground.Restrictions will deprive country of opportunities, Iranian fintech firms warn In May, he noted that local companies have managed to circumvent the economic blockade through crypto transactions.

Do you expect Iranian businesses to expand the use of cryptocurrencies in foreign trade? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.