Iranian officials may be able to avoid US sanctions thanks to their use of cryptocurrency to pay for imports worth $10 million.
The country's Tasnim news agency initially announced the order, but little is currently known. For starters, the kind of cryptocurrency that was used for the order is still shrouded with mystery.
Female members of the Iranian Basij militia march past President Mahmoud Ahmadinejad as they hold their country's flag during the annual army day military parade in Tehran on April 17, 2008. Ahmadinejad proclaimed today Iran was the "most powerful nation" in the world as the country's air force boasted of its prowess at a time of mounting tension with the West.
Evading US Sanctions?
The import order might just be the start, according to a tweet from Iranian trade official Alireza Peyman-Pak. He claimed that smart contracts and cryptocurrencies would be widely used in international trade with target nations by the end of September.
Reuters said that the political repercussions of this move could be significant since transactions like this could avoid the embargo that the US has imposed on Iran.
As noted by Futurism, this is not the first time that Iran's crypto-related activities have garnered media attention. In fact, a report from the blockchain analytics company Elliptic from 2021 found that Iran accounted for 4.5 percent of all Bitcoin mining activity worldwide because of the low cost of electricity in the country.
After learning this report, the Iranian government accused cryptocurrency miners of disrupting its electrical grid and has ultimately outlawed the practice.
Futurism also said that this is not the first time Iran is attempting to circumvent sanctions by using cryptocurrencies. A recent Reuters investigation claimed that Binance, a cryptocurrency wallet provider, was aware that Iranians were utilizing its service even with the sanctions in place.
BANGKOK, THAILAND - MAY 14: A poster with the Bitcoin logo is on display at the Thailand Crypto Expo on May 14, 2022 in Bangkok, Thailand. Cryptocurrency Enthusiasts attend Thailand Crypto Expo 2022, the largest cryptocurrency exposition in Southeast Asia, at the Bangkok International Trade and Exhibition Center. Visitors learn about blockchain projects, exchanges, mining, NFT production, and gamefi technology. The exposition comes during a global market crash.
Rial Cryptocurrency
Iran also plans to introduce its Rial cryptocurrency later this month. According to Bitcoin.com's report, it will begin on Aug. 23, and Iranian officials are already making preparations to introduce a crypto rial pilot program.
The coin is reportedly built on a distributed ledger system that can enable smart contracts and would be maintained by accredited financial institutions.
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Written by Joaquin Victor Tacla
