The Iranian government is taking measures to facilitate crypto payments for businesses importing goods into the sanctioned nation. A specialized platform has been formed to enable local enterprises to transfer cryptocurrency to overseas settlements.
Iran’s Trade Organization Chief Commits To Cryptocurrency Use For Imports
According to local media, Iran’s Trade Promotion Organization (TPO) stated that Iranian firms would be able to pay for imports with cryptocurrencies.
The head of a government agency, Alireza Peymanpak, declared that the Central Bank of Iran (CBI) had authorized the use of cryptocurrencies in the settlement of imported products.
On Sunday, Peymanpak was quoted by the official Economy and Bank of Iran News Network (Ibena) stating that the Economy Ministry will make the final decision.
Peymanpak made his remarks a few months after announcing that Iran had made its first official import order in cryptocurrency. The government official disclosed the transaction was for items worth $10 million in August 2022.
According to his tweet, the utilization of cryptocurrencies and smart contracts will be prevalent in foreign trade with targeted nations by the conclusion of September.
Peymanpak has recently announced that a dedicated platform has been developed to link domestic enterprises interested in paying overseas suppliers using digital currencies. Peymanpak went on to explain that firms are able to leverage the platform to send cryptocurrency as a means of settling import payments.
This infrastructure was necessary to facilitate cryptocurrency-based money transfers. According to the executive, the platform is connected to Iran’s Comprehensive Trade System and the CBI’s Currency Allocation Platform.
Peymanpak oversees TPO, an organization affiliated with Iran’s Ministry of Commerce and charged with promoting the Islamic Republic’s non-oil exports.
According to a report from the Financial Tribune, trading cryptocurrencies with Iraq, Afghanistan, and Pakistan may be subject to certain restrictions. The English-language newspaper noted, however, that digital currencies can aid Iran in export markets where they are used, such as China, India, and Russia.
Similar to Iran, Russia has been the subject of Western sanctions, primarily for its role in the conflict in neighboring Ukraine, with multiple cycles of increasing sanctions imposed since it invaded Ukraine in full last year.
In an effort to circumvent tightening restrictions on traditional financial transactions, policymakers in Moscow have been deliberating the limited legalization of cryptocurrencies so that Russian companies can use them in international settlements with foreign partners.