Iran has given a major boost to the global crypto market by allowing the use of cryptocurrencies for international settlements. The Iranian central bank and government have given the go-ahead for digital coins to be used in foreign trade.
The Central Bank of Iran and the Ministry of Industries, Mining and Trade concluded an agreement to link the CBI crypto platform to the Comprehensive Trade System. Alireza Peyman Pak, the head of the Trade Promotion Organization of Iran, said they have nearly sealed a mechanism for operations of the system. He believes it will provide new opportunities for importers and exporters to deploy cryptocurrencies in their international deals.
Pak, who also holds the position of deputy minister of trade, provided details about the first meeting of a joint foreign exchange working group. The Central Bank of Iran and the Trade Department held discussions. A number of measures were approved to facilitate the country’s foreign trade. It included the adoption of the crypto mechanism.
The Iranian Trade Ministry will outline a plan for the use of locally produced cryptocurrencies and coins acquired by private companies. This will be used to pay for the import of goods. Pak believes that blockchain systems and cryptocurrencies can be used for practical applications. If Iran opts to ignore the emerging technologies, the country will end up losing business opportunities.
The minister said there would be setbacks in dealing with Afghanistan, Iraq and Pakistan because of the respective countries’ crypto restrictions. But there would be gains in Southeast Asia, Russia, and India where cryptocurrencies are widely used.
Despite the adoption of cryptocurrencies, Iran’s crypto space is largely unregulated. The central bank, in April 2021, had given domestic banks and money exchanges green light to utilize domestic-minted coins to pay for imports. The growing popularity of cryptocurrencies in Iran cannot be ignored. Reports stated that around 12 million Iranians hold one crypto or another.
