A few months ago, Iran decided to break the crypto ice by making its first import using Bitcoin. It was just to see how things would work and if the leading cryptocurrency can relieve the dependence on the US Dollar some time in the future. That first import went very well, so Iran decided to add crypto imports into a new law.
Juts last week, the Middle East country passed a new act which enables it to use Bitcoin for various imports. The act has a complex legal framework that was months in the making. Iran’s Minister of Industry, Mine, and Trade Reza Fatemi Amin says that with this law, Iran essentially defines crypto regulations. It sees Bitcoin as a viable method for international payments on a variety of imports.
The US Dollar is going strong, but the number of countries trying to find an alternative to it has increased since the Russia-Ukraine war. Iran is one of the countries strongly opposed to it, always looking for ways to reduce the dependence on USD. Thanks to the new law, it can now use Bitcoin to bypass the dollar. It was a revolutionary move by the Iranian government, but it couldn’t be done without the collaboration between the Central Bank and the Ministry of Industry.
Fatemi Amin explained how the law works, saying that local businesses are now free to import cars using Bitcoin. Other businesses can use it for imports too instead of the Euro or the Dollar like they did so far. The move comes off the heels of Iran’s first successful import made using Bitcoin which was valued somewhere over $10 million.
It’s a far cry from what happened last May, when Iran banned Bitcoin mining operations. The Iranian Central Bank banned the use of cryptocurrencies mined outside the country that same month, but surprisingly lifted these restrictions in October. By December, they were re-imposed citing power grid concerns, leaving businesses and traders scratching their heads.
View for the Future
The new law essentially allows companies and Iranian ministries to import goods with Bitcoin, but it doesn’t make Bitcoin fully legal in the country. Bitcoin mining is still forbidden. Iranians can trade at international exchanges, but at their own peril. However, it’s still a step in the right direction. One could say that Iran is looking to the future with this new law, forming a long-standing stance on Bitcoin and cryptocurrencies in a broad term.
The goal is clear – reduce dependency on the Euro and the US Dollar. The world is currently in the midst of a possible power shift, and Iran has picked a side. It can be a gamble that backfires badly, or a smart move that can have fantastic results. Only time will tell which way it goes.
One thing’s for sure. Even in harsh times for Bitcoin, a traditionally very strict Middle Eastern country has turned to Bitcoin. That must account for something, and shows that the world is slowly abandoning traditional payment methods.