The Central Bank of Iran and the Ministry of Industry, trade and mining have agreed to link the CBI crypto platform to the global trade system. This will allow businesses to make headway to settle payments to overseas partners.
”We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptos in their international deals,” IBENA quoted Peyman-Pak, head of Trade Promotion Organization, as saying.
However, “without appropriate measures, foreign CBDCs could facilitate illicit flow”, the international lender said, adding that this will make it difficult for authorities and regular bodies to enforce restriction and capital flow management measures.
In January 2020, the Iranian government-approved cryptocurrency mining as an industrial activity. Considering the cheap power, many miners, particularly from China, engaged in the country. The Government issued licences for crypto mining units. Paramount to that, they allowed bitcoin to be mined by these units while requiring them to sell the cryptocurrencies to CBI.
Bitcoins were initially banned in Iran, but in early 2019, Iran legalized and issued regulations on cryptos, banning their use in transactions domestically but permitting their possessions and mining. However, despite their recent popularity, bitcoins may not be as promising as the country hopes since the value is pretty unstable.
Cryptocurrency for payment settlement, especially during imports, can be favourable shortly. This will certainly reduce the chances of suppliers being penalized by countries like the U.S. because of the sanctions imposed on Iran.
Also, the country is considering crypto as the only way to keep its economy alive by selling the cheapest electricity.
Currently, Iran is home to 4.6%miners globally. “The Iranians state is effectively selling its energy reserves on the global market using bitcoin to bypass trade embargoes” study finds.
Perhaps, the rising interest of Iranians in cryptos has now promoted authorities to finally pursue the roadmap for crypto business. Iran is clearly seeing it as the future of finance.