Iran .. Using digital currency in the first import request
DUBAI - (Reuters) - Iran submitted its first official import order using cryptocurrency this week, the Tasnim news agency reported, in a move that could enable the Islamic Republic to circumvent US sanctions that have crippled the economy.
The order, valued at $10 million, was a first step toward allowing the country to trade through digital assets bypassing the dollar-dominated global financial system and trading with other countries similarly constrained by US sanctions, such as Russia. The agency did not specify which cryptocurrency was used in the transaction.
“By the end of September, cryptocurrencies and smart contracts will be widely used in foreign trade with target countries,” an official from the Ministry of Industry, Mining and Trade said on Twitter.
The United States imposes an almost complete economic embargo on Iran, including banning all imports, including those from the country's oil, banking and shipping sectors.
Last year, a study found that 4.5 percent of all bitcoin mining takes place in Iran, due in part to the country's cheap electricity. Cryptocurrency mining could help Iran earn hundreds of millions of dollars that can be used to buy imports and reduce the impact of sanctions.
Cryptocurrencies such as Bitcoin are highly volatile and have not found a broad basis for their use in payments.