Iran to Permit Use of Cryptocurrencies in International Settlements, Reports Reveal

Iran to Permit Use of Cryptocurrencies in International Settlements, Reports Reveal

Authorities in Iran are preparing to allow the employment of cryptocurrencies for international settlements. According to local media, central bank and government officials have given the green light to adopt a mechanism using digital coins in the field of foreign trade. Businesses in Iran to Be Able to Pay Foreign Partners With Crypto

Iranian companies will be allowed to use cryptocurrencies in settlements with partners in other countries, local media reported. An agreement to that end has been reached by the Central Bank of Iran (CBI) and the Ministry of Industries, Mining and Trade. Quoted by the Financial Tribune, the head of the Trade Promotion Organization of Iran, Alireza Peyman Pak, announced: We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptos in their international deals.

According to the Iranian news agency IBENA, Pak, who is also deputy minister of trade, took to social media to provide details about the first meeting of a joint foreign exchange working group between his department and the CBI. The participants approved a number of measures to facilitate Iran’s foreign trade, including the adoption of the crypto mechanism.

A follow-up report quotes the same official as saying that the Trade Ministry will produce a plan within two weeks for the use of locally mined cryptocurrencies and coins acquired by private companies to pay for the import of goods. The initial proposal comes from the Central Bank of Iran.

Pak emphasized that cryptocurrencies and blockchain systems have many practical applications and if Iran ignores them, it will lose business opportunities. “In some of our target markets, especially in countries such as Iraq, Afghanistan or Pakistan, there may be restrictions on using cryptocurrencies, but in our major markets such as Russia, China, India and Southeast Asia, using cryptocurrencies is common,” he elaborated.

Besides mining, which was legalized in 2019, Iran’s crypto space remains largely unregulated. In April, the Central Bank of Iran (CBI) authorized domestic banks and money exchangers to use locally minted digital coins to pay for imports to the sanctioned nation. However, Tehran authorities have been going after crypto trading and payments in the country.

Cryptocurrencies have enjoyed a growing popularity in the Islamic Republic, with up to 12 million Iranians holding one coin or another, according to a recent estimate. Some officials have opposed restrictive policies, insisting these could push innovations underground. Limitations will deprive the nation of opportunities, Iranian fintechs warned in May, pointing out that local companies have managed to bypass the economic blockade with crypto transactions. Tags in this story Blockchain, Businesses, cbi, central bank of iran, companies, Crypto, crypto payments, Cryptocurrencies, Cryptocurrency, foreign trade, international settlements, Iran, Iranian, Iranians, mechanism, Payments, Settlements, trade, Trade Ministry

Do you expect Iranian businesses to expand the use of cryptocurrencies in foreign trade? Tell us in the comments section below. Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. El Salvador to Add More Geothermal Energy Sources to Power Bitcoin City NEWS | 13 hours ago Argentina-Based Mobile Wallet App Belo Adds Lightning Network Support via Opennode NEWS | 15 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleExpanding Crypto Market Caps by 500% to 1,300%: Stablecoin Issuance Saw Significant Growth Last Year Next article175-Year-Old News Cooperative the Associated Press Plans to Launch NFT Marketplace Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItEthereum Has Burned 1.2 Million ETH in 4 Months, Close to $5 Billion in Ether Destroyed

With three days left until the end of 2021, the Ethereum network and its native token ether have had a phenomenal year as ether has increased more than 450% in value in 12 months. 145 days ago, on August 5, ... read more.Crypto Scammer Arrested in Bangkok After Fleeing With 500 Million Baht Charles Hoskinson Discusses Cardano’s 2022 Plans, Founder Says Project ‘Needs Institutions to Have Stake in the Success of ADA’ Bank of Russia Wants to Restrict Crypto Investments by Blocking Card Payments, Report Reveals India"s Swadeshi Jagran Manch Calls for Outright Ban on Cryptocurrency