Iran Adopts Cryptocurrencies for Imports, First Order Worth $10M Placed

Iran last month passed an act introducing regulations on cryptocurrency trade transactions, the supply of fuel and electricity for mining, and the authorization to use cryptocurrencies. The agreement between the Ministry of Industry and Iran’s Central Bank sanctions the use of cryptocurrencies to process imports from other countries by government and local businesses.

Iran placed its first official cryptocurrency import order worth $10M on August 09, tweeted Alireza Peymanpak, Vice Minister of Iran's Ministry of Industry, Mine and Trade. The move could enable the Islamic Republic to circumvent U.S. sanctions that have crippled the nation's economy.

"By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries," an official from the Ministry of Industry, Mine and Trade said on Twitter.

The agreement comes despite bans on crypto mining and transactions last year, citing power grid concerns. A study found that 4.5% of all bitcoin mining occurred in Iran due to the country's cheap electricity.

Enabling crypto transactions is expected to lessen the impact of U.S. sanctions and move the country firmly towards crypto adoption.