International trade: Iran becomes the first country to use crypto for import funding

  • Iran to use cryptocurrency for its international trades
  • Country’s fiat currency currently weak

The government of Iran has approved the use of cryptocurrencies to carry out importation of goods into the country.

With this new law, the government has directed the Central Bank of the country to use digital currencies as a funding mechanism for its international trades.

According to The Islamic Republic News Agency (IRNA), the Iranian Central bank (CBI) and the Country’s Ministry of Energy have mandated miners to supply the country cryptocurrencies through channels that have been approved by the CBI.

The Ministry of Energy also announced that every miner would have a limit on the amount of crypto they can mine. This limit would be determined by the amount of subsidized energy the used to carry out such crypto mining.

This new approval for mining activities by the Iranian government could spark hashrate war. Currently, Kazakhstan, Iran, Malaysia, and Canada have continued to record an increase in the number of hashrate they produce. China, however, has lately been recording a drop in its share of the market.

Iran new approval for cryptocurrency is in line with its earlier approval of mining activity within the country. The country has received varying degrees of sanction from the US which has impacted how it trades internationally.

The country’s currency has also been struggling lately. The country economy is currently suffering from a high inflation rate which stands at 34%.

Iran to use cryptocurrency for its international trades

The US sanction on Iran has forced the hands of the government to enforce the use of cryptocurrency as the approved currency that it would be using in its international trade.

This decision would allow them to bypass the use of dollar as the acceptable currency for its importation.

The country has also announced that it is considering creating its own digital currency.

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