Iran has stepped up its crypto game by making its first official use of cryptocurrency in international trade to circumvent US sanctions. The order was worth $10 million. This is the first step that records Iran trading through digital assets that bypass the dollar-dominated global financial system. It can trade freely with other countries, like Russia, that have been hit by US sanctions.
An official from the Ministry of Industry, Mine, and Trade, tweeted that by the end of September the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries. Experts say Tehran is one of the first economies in the world to embrace cryptocurrency technology as a payment tool for eroding governmental control over finance and economies.
A study in 2021 established that 4.5% of Bitcoin mining was taking place in Iran – due to the country’s cheap electricity. This could help Iran earn hundreds of millions of dollars that can be used to purchase imports and lessen the impact of sanctions. The United States imposed strict economic sanctions on Iran in the late 1970s. This was in response to Tehran’s nuclear program and support of various organizations that Washington considers terrorists. As such, Iran has been unable to access the dollar-denominated global financial system to trade with other countries.