Iran initiated its first official import order using cryptocurrency this week, the Tasnim News agency reported on Tuesday. This move could enable the Islamic Republic to evade the US sanctions that have crippled the economy.
The order worth $10 million was the first step toward allowing the country to trade using digital assets that bypass the global financial system that are dollar-dominated. It has also permitted trade with other countries similarly limited by US sanctions, like Russia. The cryptocurrency used for the transaction is unknown yet.
The Ministry of Industry, Mine, and Trade said that by the end of September, the use of cryptocurrencies and smart contracts would be widely used in foreign trade with target countries.
The United States had imposed an almost total economic embargo on Iran, including a ban on all imports, including the oil, banking, and shipping sectors of the country. Tehran is one of the largest economies that is yet to embrace cryptocurrency technology. It was established in 2008 as a payment tool to erode governmental control over finance and economies.
Last year, a study found that 4.5% of all bitcoin mining was taking place in Iran. This was partly a result of the country’s cheap electricity facilities. The mining of cryptocurrency could help Iran earn hundreds of millions of dollars. It can help Iran to buy imports and lessen the impact of