Local companies in Iran can now use digital currencies to pay for imported goods. The only condition is that the currencies have to be mined by authorized crypto miners in the country. In its last statement, Iran Central Bank announced a new regulatory policy allowing banks and forex firms to pay for imports like raw materials and electronics using virtual currency.
Keep in mind that the Iran cryptocurrency industry has an unstable history. In the past, the Middle Eastern republic had to encourage virtual currency block mining. Iran did so by engaging power plants to participate in cryptocurrency activities. Unfortunately, the government blackmailed the industry, blaming it for electricity disruptions affecting the country. Last year, the country closed more than 1,600 block mining operations claiming that they are illegal. According to the CoinGeek report, most of these operations were utilizing subsidized electricity allocated to Iranian households.
Now, the Iranian administration wants to encourage cryptocurrency payments. Financial Tribune, a local paper, reported that the only condition to using crypto payments is that the currency must be from authorized reward miners. The country started to authorize miners back in 2019. That was after the Ministry of Mining overlooked the industry.
The governments started to work on cryptocurrency payments from last year October. According to the CoinGeek report, the Ministry of Energy and Central Bank legalized digital currency payments on imports. However, the bank has to monitor this mode of payment strictly all the time.
The bank’s official report directed miners to supply original currencies directly within a specified limit through CBI channels.
As Iran legalizes cryptocurrency payments, it has established a crypto trading crackdown. For example, some months ago, the Digital Economy Commission CEO ordered the government to prohibit using rial to buy virtual currencies. He stated that the crypto market has influenced several scams. Also, the bank governor stated that they will list some exchanges that reward miners can utilize when selling their virtual currencies.
What do you think about the whole thing with Iran accepting cryptocurrency payments on imported goods? Feel free to comment your views below.