Central Bank of Iran To Explore Potential Use Of Cryptocurrencies To Pay For Imports
Central Bank of Iran To Explore Potential Use Of Cryptocurrencies To Pay For Imports
May 1, 2021
Central Bank of Iran To Explore Potential Use Of Cryptocurrencies To Pay For Imports
Central Bank of Iran To Explore Potential Use Of Cryptocurrencies To Pay For Imports
May 1, 2021

The Central Bank of Iran (CBI) has continued to explore the potential use of cryptocurrency as a tool for mitigating the devastating impact of economic sanctions imposed by the United States. 

It has been reported that CBI is authorizing banks and licensed Forex shops to use cryptocurrency as payments for imports. 

However, under its regulatory framework, the cryptocurrency must derive from licensed crypto miners only. These mining operations are officially permitted by the Iranian state as an industrial activity and require operators to secure a license from the Ministry of Industry, Mine, and Trade. 

The report said that as Financial Tribune reports, the Iranian government ratified regulations that would enable crypto to be used legally for imports in October 2020, provided that miners sell their coins directly to the CBI.

Iranian think tank Majlis Research Center stated:

“According to experts, one way to avoid the adverse effects of the unjust sanctions is to use cryptocurrencies for foreign trade.”

Likewise, in January 2021, Shahab Javanmardi, a member of the Iran Chamber of Commerce Industries Mining and Agriculture, advocated for the government to use cryptocurrency to help counter trade difficulties in a tough geopolitical climate.

ALSO READ :  Trillions Of Dollars Injected Into The Global Markets To Revitalize The World Economy

He said:

“Repatriating revenue from exporting gas and electricity is not possible under the present [U.S. sanctions]. The government can promote use of excess electricity output or power generated by small-scale plants to mine cryptocurrencies and make up for the locked resources.”

Moreover, Javanmardi proposed creating a central market, similar to the secondary Forex market, through which officially mined cryptocurrency could be sold to Iranian firms seeking to import materials, machinery, and other goods.

Thus, Sajed Nikpour, a member of the ICCIMA commission for promoting non-oil exports, is cited as saying that the private sector believes cryptocurrency’s usefulness for the Iranian economy applies to the trade sector and could facilitate a boost to domestic production by enabling imports of raw materials. Nikpour has stressed the need to keep such measures transparent. 

ALSO READ :  Roll Gets Hacked, Intruder Absonding With 3,000 ETH Worth $5.7 Million

Source: Cointelegraph | Image: Fintech Futures


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Coinbase Active Users Increase By 120%

Coinbase Active Users Increase By 120%

The active users of Coinbase, the major cryptocurrency exchange, have increased by 120%, while trade volumes tripled. It has been reported according to documents filed with the US Securities and Exchange...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with experience of 1.5 years. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.