A Major Milestone – Iran Makes First Import Order Using Cryptocurrency

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The Middle East is heavily interested in cryptocurrencies, but there’s still no country brave enough to make a move. Regardless, Iran just made history after the country placed an order worth $10 million using cryptocurrencies. It didn’t specify which crypto was used, but we’re sure that some stablecoin is the ‘culprit’.

This cryptocurrency order was done so that Iran could circumvent the dollar-dominated global financial system. It allows the country to trade in digital assets and with other countries trying to bypass the US Dollar. Russia has done the same and so have other countries too. According to Iran’s Ministry of Industry, Mine, and Trade, the use of smart contracts and cryptocurrencies in Iran for foreign trade will be growing even bigger.

Total Economic Embargo

The move is certainly revolutionary, but not that surprising. Iran is completely isolated by the USA with a total economic embargo placed on the country. It includes a ban on all imports. In this way, the country’s shipping, banking, and oil sectors are completely cut off.

According to a last year study, 4.5% of the global Bitcoin mining industry takes place in Iran. While there’s currently no legal framework for cryptocurrencies, Iranians invest heavily into BTC. With mining quite popular in the country and having placed the first crypto import order, Iran has essentially found a new channel that can lessen the impact of the sanctions. It’s even better for the country when you take a look how cheap the electricity is. Iran has the cheapest electricity prices in the Middle East, so it’s no wonder why Bitcoin mining is so big in the country.

Tehran is among the biggest economies that has embraced cryptocurrency technology. Bitcoin may be highly volatile, but Iranians don’t mind. With the US sanctions in place, everyone’s trying to switch savings from the USD to BTC. On Monday, the EU has said to be preparing a ‘final’ text to revive the original 2015 Iran nuclear deal. According to that arrangement, Iran was to put a stop on its nuclear program in return for relief sanctions from the USA, the EU, and the UN. However, ex-US president Donald Trump reneged on the deal in 2018, bringing the harsh sanctions back.

What Will This Change?

Once confirmed successful, the order will change a lot of things for Iran. Its crypto mining capacity is a new stream of revenue. The country can now use digital assets to bypass the Dollar and trade with others who are against USD too, like Russia. While Bitcoin is impractical when it comes to large-scale import deals due to the volatility, a stablecoin should work.

It’s not the first time a US-sanctioned country has turned to cryptocurrencies. After being blasted by the IMF, El Salvador turned 100% to Bitcoin as legal currency. One of the poorest countries in Africa, the Central African Republic, recently did the same. With Iran now considering imports using cryptocurrencies, it’s clear that the world is entering a brave new economic era.

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Author: Harper James