Iranian authorities are ready to permit the use of cryptocurrency for international settlements. Local media reports that officials from the central bank and the government have approved the use of digital coins for foreign trade.
Companies in Iran will be able to pay foreign partners with crypto
According to local media, Iranian companies will soon be permitted to use crypto currencies in international settlements. The Central Bank of Iran and the Ministry of Industries, Mining and Trade reached an agreement. According to the Financial Tribune Alireza Peyman Pak (head of Iran’s Trade Promotion Organization) announced the following:
The system’s operation mechanism is being finalized. The system will offer new options for both exporters and importers who want to make use of cryptos in international trade transactions.
The Iranian news agency IBENA reports that Pak (also deputy minister of trade) took to social media for details on the inaugural meeting of the joint foreign exchange working groups between his department and CBI. The participants approved a number of measures to facilitate Iran’s foreign trade, including the adoption of the crypto mechanism.
According to a follow-up report, the official said that within two weeks the Trade Ministry would produce a plan for using locally mined cryptocurrency and private coins for payment for imports. This is the Central Bank of Iran’s initial proposal.
Pak stated that both cryptocurrencies and blockchain have numerous practical uses and Iran must not disregard them. Iran could lose its business opportunities. “In some of our target markets, especially in countries such as Iraq, Afghanistan or Pakistan, there may be restrictions on using cryptocurrencies, but in our major markets such as Russia, China, India and Southeast Asia, using cryptocurrencies is common,” he elaborated.
Besides mining, which was legalized in 2019, Iran’s crypto space remains largely unregulated. CBI (Central Bank of Iran) granted permission to domestic money exchangers and banks to use local-minted digital currency to pay for imports into the country. Tehran authorities are investigating crypto transactions and payment in Iran.
Recent estimates show that cryptocurrencies are gaining popularity in the Islamic Republic. Up to 12 millions Iranians hold one of these coins. Officials have argued against restrictive policies because they could lead to innovation underground. Iranian fintechs warned that limitations will deny the nation opportunities in May.
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