Iran Greenlights Bitcoin, Crypto Payments For Imports

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Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member

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Iran reportedly passed a law enabling the use of bitcoin as payment for imports and establishing a framework for the asset class, including mining regulations.

  • Iran has passed legislation establishing a legal framework for bitcoin and other cryptocurrencies.
  • Under the new law, cryptocurrency can be used as payment for imports to the country by government and local businesses.
  • The law also addresses fuel supply and electrical consumption for bitcoin mining.
Iran passed an act which enables the use of Bitcoin and cryptocurrency payments for imports through a comprehensive legal framework, per a report from local news outlet Tasnim.

According to the report, Iranian Minister of Industry, Mine and Trade Reza Fatemi Amin revealed that the recently passed law defines regulations on cryptocurrencies, addresses supply concerns for fuel and electricity costs for mining and provides authorization for the administration to use cryptocurrencies.

Minister Fatemi Amin reportedly reiterated the authorization was an agreement between the Ministry of Industry and the Central Bank –– arguably suggesting a multi-departmental consensus on the viability of bitcoin as a means for international payments.

Additionally, Fatemi Amin also noted that local businesses will be able to import vehicles by using bitcoin, instead of the U.S. dollar or the euro. Tasnim highlighted the move comes on the heels of an August 9 announcement by the head of Iran’s Trade Promotion Organization (TPO) saying the country registered its first import order processed with cryptocurrency. The order was reportedly valued over $10 million.

Harkening back to May of last year, Iran previously banned the mining of bitcoin citing power grid concerns. Additionally, the Irananian central bank also banned the trading of cryptocurrencies mined outside of the country in the same month. The mining ban was later lifted in October just to be reimposed by December of the same year, once again citing power grid concerns.

Therefore, one could argue that Iran is taking this step towards comprehensive reform to take a firm and more long-standing stance on bitcoin and other cryptocurrencies.

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JackAlabama

Entrepreneur

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Iran reportedly passed a law enabling the use of bitcoin as payment for imports and establishing a framework for the asset class, including mining regulations.

  • Iran has passed legislation establishing a legal framework for bitcoin and other cryptocurrencies.
  • Under the new law, cryptocurrency can be used as payment for imports to the country by government and local businesses.
  • The law also addresses fuel supply and electrical consumption for bitcoin mining.
Iran passed an act which enables the use of Bitcoin and cryptocurrency payments for imports through a comprehensive legal framework, per a report from local news outlet Tasnim.

According to the report, Iranian Minister of Industry, Mine and Trade Reza Fatemi Amin revealed that the recently passed law defines regulations on cryptocurrencies, addresses supply concerns for fuel and electricity costs for mining and provides authorization for the administration to use cryptocurrencies.

Minister Fatemi Amin reportedly reiterated the authorization was an agreement between the Ministry of Industry and the Central Bank –– arguably suggesting a multi-departmental consensus on the viability of bitcoin as a means for international payments.

Additionally, Fatemi Amin also noted that local businesses will be able to import vehicles by using bitcoin, instead of the U.S. dollar or the euro. Tasnim highlighted the move comes on the heels of an August 9 announcement by the head of Iran’s Trade Promotion Organization (TPO) saying the country registered its first import order processed with cryptocurrency. The order was reportedly valued over $10 million.

Harkening back to May of last year, Iran previously banned the mining of bitcoin citing power grid concerns. Additionally, the Irananian central bank also banned the trading of cryptocurrencies mined outside of the country in the same month. The mining ban was later lifted in October just to be reimposed by December of the same year, once again citing power grid concerns.

Therefore, one could argue that Iran is taking this step towards comprehensive reform to take a firm and more long-standing stance on bitcoin and other cryptocurrencies.

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It is about time for Bitcoin to become the neutral global reserve currency where adversaries can trade with each other and no one fears the other will dump on their fiat holdings.
 

Jerry1911

Entrepreneur
I think this is also bullish for Monero as it's a matter of time until Iran figures out pseudo-anonymous cryptos are a no-go due to OFAC sanctions.

Trading in BTC with Iran will not last long IMHO.
 

JackAlabama

Entrepreneur
I think this is also bullish for Monero as it's a matter of time until Iran figures out pseudo-anonymous cryptos are a no-go due to OFAC sanctions.

Trading in BTC with Iran will not last long IMHO.
Monero is not safe and hence not suitable for such endeavors and they would not care about any sanctions as they are already as sanctioned as it can get ;) maybe only surpassed by NK.

Sanctioning addresses does not work since you cannot block and shield your address from receiving tainted coins.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Monero is not safe and hence not suitable for such endeavors and they would not care about any sanctions as they are already as sanctioned as it can get ;) maybe only surpassed by NK.

Actually Russia is now most sanctioned country in the world. Overtaking Iran and NK...lol. But your right Iran has anyway lived with sanctions for over 40 years. Threats of more won't deter its path either whether its in trade, science or defense etc. Like Cuba, North Korea etc they have all found a way to survive for decades despite sanctions, proving sanctions don't work as a tool for regime change.

It's not just bitcoin Iran will be using it will be other cryptos making efforts to curb their activity much more difficult. I wonder how U.S and West will respond to this? I think I already know :rolleyes:. They will punish the average crypto company and investor with even tougher crypto regulation. In plain English they will end up stifling innovation and ultimately sanctioning themselves in the process.

It is about time for Bitcoin to become the neutral global reserve currency where adversaries can trade with each other and no one fears the other will dump on their fiat holdings.

Bypassing the fiat dollar is a major selling point. The day they start accepting crypto for oil and immediately recycling that crypto to buy goods they need like certain medicine that will be very interesting indeed.
 

JackAlabama

Entrepreneur
Actually Russia is now most sanctioned country in the world. Overtaking Iran and NK...lol. But your right Iran has anyway lived with sanctions for over 40 years. Threats of more won't deter its path either whether its in trade, science or defense etc. Like Cuba, North Korea etc they have all found a way to survive for decades despite sanctions, proving sanctions don't work as a tool for regime change.

It's not just bitcoin Iran will be using it will be other cryptos making efforts to curb their activity much more difficult. I wonder how U.S and West will respond to this? I think I already know :rolleyes:. They will punish the average crypto company and investor with even tougher crypto regulation. In plain English they will end up stifling innovation and ultimately sanctioning themselves in the process.



Bypassing the fiat dollar is a major selling point. The day they start accepting crypto for oil and immediately recycling that crypto to buy goods they need like certain medicine that will be very interesting indeed.
Haha true, things change fast these days ;)

Yeah rough times ahead for sure as the currency hegemony is being somewhat lost.
In the West, they might move to a sandbox-only model like with cash which you cannot easily withdraw from your bank balances.
 

JackAlabama

Entrepreneur
Backing anything exclusively with crypto would make for very volatile currency
It is just an accounting question.
It is volatile only because you measure it in Fiat.
The downside there is you have no idea how much of it is being issued at any time.
If I use a rubber band to measure my height, my height becomes very volatile.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
They would do good to back their "digtial Rial" with some established cryptocurrencies like Bitcoin or maybe Eth.
At least they could publish some of their holdings for everyone to see to add their endevour some initial credibility.

More likely they will back with oil and gas as they have plenty of that. People seem to forget Iran has large reserves of oil and shares the worlds largest gas field with Qatar. Qatar has one straw in one end of the gas field and Iran in the other end but has been unable to develop its end because....well we all know about sanctions.


There is a good reason the Europeans want trade with Iran and to bypass the dollar and SWIFT and created INSTEX system just for Iran ;). They are strong advocates of the JCPOA agreement US pulled out off.


Anyway a CBDC backed by commodities will work better for Iran than backing with other cryptos. It will also work better for resource rich African countries too. My only concern is we know what happens to countries that announce they will no longer use dollars for oil i.e Iraq and Libya.
 

JackAlabama

Entrepreneur
More likely they will back with oil and gas as they have plenty of that. People seem to forget Iran has large reserves of oil and shares the worlds largest gas field with Qatar. Qatar has one straw in one end of the gas field and Iran in the other end but has been unable to develop its end because....well we all know about sanctions.


There is a good reason the Europeans want trade with Iran and to bypass the dollar and SWIFT and created INSTEX system just for Iran ;). They are strong advocates of the JCPOA agreement US pulled out off.


Anyway a CBDC backed by commodities will work better for Iran than backing with other cryptos. It will also work better for resource rich African countries too. My only concern is we know what happens to countries that announce they will no longer use dollars for oil i.e Iraq and Libya.
Well, they can claim whatever backing they wanna claim without anyone having any idea if its true or not. They can also willfully print any given amount.
If they "claim" to back it with oil, like Venezuela did with their failed Petro, they just need a network which is not in the hand of the "enemy" to transact.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
If they "claim" to back it with oil, like Venezuela did with their failed Petro, they just need a network which is not in the hand of the "enemy" to transact.

I think they are well aware of playing a game of soccer where the "enemy" owns the football and can throw a tantrum and take the football away during the match ;). Even China realizes this after seeing what happened to Russia with SWIFT and government funds freezing etc. China sits on $3.1trn in forex reserves including $967bn in US treasuries alone. All can be frozen in a minute if they enter conflict with Taiwan. So there is aligned minds. All parties will seek a mutual solution rather than repeat independent efforts.

The parallel financial system is coming whether people like it or not. How crypto will play a part I would be interested to see.
 

JackAlabama

Entrepreneur
I think they are well aware of playing a game of soccer where the "enemy" owns the football and can throw a tantrum and take the football away during the match ;). Even China realizes this after seeing what happened to Russia with SWIFT and government funds freezing etc. China sits on $3.1trn in forex reserves including $967bn in US treasuries alone. All can be frozen in a minute if they enter conflict with Taiwan. So there is aligned minds. All parties will seek a mutual solution rather than repeat independent efforts.

The parallel financial system is coming whether people like it or not. How crypto will play a part I would be interested to see.
Yes, it is going to be very interesting to see. And I guess we will not have to wait another decade.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member

Crypto for foreign trade: What do we know about Iran’s new strategy​



Crypto-Rial in Pre-Test Phase​


 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
In the future being able to exchange digital Rial for other cryptos or CBDC's could break the back of western sanctions on Iran. It would make international business a lot easier for Iran.

Actually a future where every country issues their own CBDC's and can trade with whoever they want without SWIFT and outside the dollar is very interesting for developing countries. It would off course require strict bilateral rules to prevent excessive printing of CBDC's by any one central government - and hence devaluing them for the holder. But rules can be worked out with careful planning. Then its bye to SWIFT/Correspondence banking and goodbye to dollar hegemony smi(&%.

P.S One problem. The high level of US denominated national debt held by some countries will restrict their ability to go this route. Meaning they will always need dollars for the foreseeable future.
 

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