Iran makes headlines by using announcing the use of cryptocurrency for international trade
The popularity of Bitcoin Rush is soaring up high in the sky, and the whole world is witnessing this sudden shift. Who would have thought that this global pandemic could do such miracles for the cryptocurrency industry? It’s been over a decade since the currency has existed in the market but now is the time it’s changing its position as a safe haven for illicit money, or a shortcut to earn money to this currency which is going to be widely recognized, accepted all across the world.
Though the whole world is yet to step on this trajectory what we hear from recent reports around Iran is already there. It recently announced that Bitcoin and cryptocurrency will be used in international trade, and that’s pretty big considering the state of its economy. The economic crisis has already gripped the country and its Fiat currency, Rial is falling on its back. It seems fair and smart to start with cryptocurrency already when it’s in its most progressive and developing stage.
A couple of years back, the Central Bank of Iran had put a complete ban on the use, buying, selling, and holding of cryptocurrencies. This decision was taken in light of considering the social and civil state of the country. It banned the use of any cryptocurrency by all the banks and financial institutions of the country.
The country is put on the blacklist by the Financial Action Task Force and in order to remove this stigma and show these international agencies its efforts to combat money laundering and terror finance, it had to take some big steps. So, it banned the use of crypto which is the most widely used way to run these illicit operations.
Iran’s economic troubles magnified
However, now the state of the country has worsened and it was worrying and terrifying for the government. Iran is undergoing a serious economic crisis. The global pandemic has done its job in crippling Iran’s economy and financial situation too. It was one of the top 5 countries at a point when it came to Covid-19 cases and of course, the dilapidated health care system of the country was no help.
In another set of blows, the U.S. government continued with its sanctions on Iran. Not only, it stopped all kinds of trade with Iran but it also forced other countries to do the same. This worsened the situation even more and there had to be something to do about it.
During such grim times, crypto came as a savior which could help Iran a little to come out of this situation.
While it is already well known that a huge population of the country is already dealing in crypto and other currencies. It is because the citizens needed some sources to help them get out of this situation, and they have long been into this trade but it was not legalized or officially recognized. However, now the country is taking its adoption of crypto and Bitcoin to yet another level.
The Iranian national publication made this announcement this week that the country is opening its doors for using Bitcoin in international trade. The country’s financial experts have taken this decision to save the falling economy. The Ministry of Imports will now be using cryptocurrencies to pay for the imports, exports and heavy taxes levied. This way the country has found a way to evict the U.S. sanctions and continue trading without falling in the ambit of sanctions.
The decision includes this rule that the currency will only be used by funding imports and exports and not for any other purpose. They will hire miners for the same who will mine crypto in large amounts and will hand it over to the concerned department. The amount of crypto to be mined will be fixed for every miner, and that’s how they are going to regulate the whole system.
Story by Scott Mccall