The Iranian trade sector has received the go-ahead to conduct transactions with cryptocurrency in a bid to help companies avoid the US-imposed sanctions on the country’s finance and banking sector. According to crypto-reporter.com, the two main entities that have come to an agreement in this sense are the Ministry of Industry and the Central Bank of Iran.
The Iranian Minister of Industry emphasised that the recently passed law defines regulations on these digital assets, addresses supply concerns for fuel and electricity costs for mining, and it provides authorization for the administration to use cryptocurrencies.
Another official from the Iranian Ministry of Industry revealed that the use of cryptocurrencies and smart contracts will be widely adopted in foreign trade with target countries by the end of September 2022.
In August 2022, Iran placed its first official import order worth USD 10 million using cryptocurrency, all in an effort to settle subsequent international trades with digital assets.
In the same month, Iran’s association of importers has stressed the need for a regulatory framework for crypto now that the Iranian government is using crypto to pay for imports. In the context of this widespread crypto adoption, the chairman of Iran’s Importers Group and Representatives of Foreign Companies (Imports Association), voiced concerns about the country’s crypto regulation. He pointed out that, in order for cryptocurrencies to be successfully used as a means of payment for imports, the country needs a stable regulatory framework.
Iran wants to join Russia’s Mir card payment system
Iran’s cryptocurrency adoption ties in with the country’s efforts to join Russia’s Mir card payment system in order to improve regional trade and bypass US sanctions.
Officials from Iran Central Bank revealed that their collaboration with Russia would enable financial transactions between the two countries via Mir. Following this deal, Iran could transfer money with other member countries via this system in the future.
The main candidates for these partnerships are countries that Iran has a Free Trade Agreement with, including Belarus, Kazakhstan, Kyrgyzstan and Armenia, all of which are members of the Eurasian Economic Union (EAEU).
Other countries that have adopted the Mir payment system include Tajikistan, Uzbekistan and Turkey, as well as Nigeria and India.
Source » thepaypers