Iran continues to show firm support for cryptocurrencies despite the tough regulatory stance taken by some of its Asian counterparts. The Asian country has reportedly alerted its international trade partners that it will accept crypto payments for overseas trade transactions.
As per Mehr News, the country’s Central Bank (CBI) and the trade ministry has agreed to integrate digital asset payment into CBI’s platform to facilitate trade transactions in cryptocurrency. According to the Deputy Minister of Industry, Mine, and Trade Alireza Peyman-Pak, the new trading system will be concluded before the end of January.
While announcing the news, Peyman-Pak said that the move will offer new and exciting opportunities for businessmen to transact in cryptocurrency for their international trades. Iran is the first-known country to make such a move.
Peyman-Pak Acknowledges the Economic Importance of Digital Assets
Speaking of the latest crypto move, the minister acknowledged the importance of cryptocurrency economic and business-wise, and urged regulatory watchdogs not to ignore the countless opportunities presented by the nascent currency.
World governments have continuously stressed the need to regulate the crypto industry due to its volatility and energy consumption. The likes of China, Singapore, and South Korea have already put some measures in place to mitigate any effect the industry might have on its citizens and the financial sector.
Peyman-Pak believes that crypto can boost the economy when used wisely. When asked to explain crypto can be used for international trades, the minister said that Bitcoin and altcoins are credits. Traders can convert their fiat monies to these credits and use them to pay for their goods.
Iran’s Dependence on Cryptocurrency Continues
Iran’s economic woes caused by U.S. sanctions have forced the country to result in crypto transactions. By December 2020, Iranians had traded about $20M in twelve separate virtual cryptos each day.
Before this news, the country had amended a legislation on cryptos, allowing the CBI to use digital assets to fund imports. The cryptos will be directly supplied by the miners, according to the dictates of the government.
Besides Iran, El Salvador is another country that’s active in BTC transactions. Like Iran, sanctions by the U.S. government forced it to result in dealing in crypto. The country officially legalized crypto use in September, last year.
Given the current bloodbath the crypto market is into, the news can help kickstart a bullish run. Although BTC is still at its record lows, ETH hit $3.2k for the first time in days. It’s still speculative if ETH will be able to sustain the run.
The news can also become bullish for Iran whose issues with the mining industry are causing a strain. Last month, the government limited power supply to its miners to conserve energy amid decreasing temperature.