Is Bitcoin suitable as a trading currency? For the first time, Iran is buying goods worth tens of millions of US dollars with crypto. In this way, the evasion of sanctions by the USA succeeds.
Bitcoin as a currency for imports in Iran?
While crypto adoption for private users is steadily growing, an international Bitcoin standard still seems far away. So far, states have mostly been hostile to the digital currency.
With El Salvador and the Central African Republic, there are already countries that want to boost their economies by promoting Bitcoin domestically.
But there is also another category of states that are increasingly using cryptocurrencies: those that are affected by sanctions and therefore cannot access the US dollar as an international trading currency or traditional payment methods.
One of these countries is Iran, which is trying to circumvent the problem with BTC and co. Yesterday, Deputy Minister of Industry and Trade Alireza Peyman-Pak announced a milestone:
This week, the first official import order with cryptocurrencies worth tens of millions of dollars was successfully placed.
On the other hand, it remains uncertain which goods were acquired and whether Bitcoin or another cryptocurrency served as a means of doing so. Russia has also been increasingly affected by sanctions since the war with Ukraine.
Russia agreed several months ago to be able to conduct international business with Bitcoin or other cryptocurrencies. The Ministry of Finance recently announced that it had made all the necessary preparations for this.
The announcement, which was made in March, that the US dollar would be replaced as the international reserve currency, is hoped to be implemented with the centralized blockchain system Cells.
Unlike Iran, Russia, according to previous information, did not use it internationally. So far, the US dollar has been replaced in this role with the Russian ruble.
Iran relies on smart Contract trading
Minister Peyman-Pak also announces another innovation in his Twitter message. This is how he writes:
By the end of September, the use of cryptocurrencies and smart contracts in foreign trade with target countries will be widespread.
Accordingly, they not only want to expand the international use of crypto, but also use smart contracts for this purpose. It remains exciting how exactly their use takes place.
Bitcoin Mining in Iran: Miners excluded from the power grid
In Iran, Bitcoin miners are excluded from the power grid. This is to prevent energy shortages. Again and again, miners are blocked from accessing.
Is Crypto Adpotion in Iran just window dressing?
But not all that glitters is gold. While Iran uses the liberal properties of cryptocurrencies internationally, the legislation restricts the country’s residents. Miners officially require a license.
The possession of large amounts of cryptocurrencies is also prohibited by law. In addition, the use as a means of payment is also punishable.
Contradictions of this kind are found again and again. El Salvador is trying to keep its citizens in a third-party system with the Chivo wallet, which negates the benefits of crypto.
Ukraine, which benefited from massive donations in the form of crypto during the war with Russia, restricts people in the country because of concerns about money outflows.
So far, instead of idealistic devotion, the state crypto adoption has been mainly characterized by self-interest.
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