Iran Adopts Bitcoin For International Trade Amid High Inflation
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Iran Adopts Bitcoin For International Trade Amid High Inflation

November 6, 2020      Jafrin Ahmed

Iran is currently in a severe recession and financial turmoil amid the COVID-19 pandemic. In response to a critical economic instability and high inflation, the government of Iran amended a new crypto ruling last week enabling the country’s central bank to fund its international trade with Bitcoin legally mined from the country. The move intends to curb the increasing number of sanctions placed on Iran by the government of the U.S.

Iran’s New Crypto Ruling Takes Bitcoin Adoption To Next Level

Last week, Iran’s state-backed news agency IRNA reported that its cabinet ministry amended cryptocurrency legislation based on a joint proposal by the CBI and the Iranian Ministry of Energy.

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Authorities in Iran are still trying to figure out how this can be properly implemented. The state-backed publication further highlighted:

“The Iranian government amended its regulations on cryptocurrencies to allow them to be exclusively used for funding imports at a time of increased pressure on the country’s normal use of hard currencies.”

Even though Iran initially regulated cryptocurrencies last year, the recent amendment asks bitcoin (BTC) miners in the country to sell their cryptocurrencies directly to the central bank, taking the country’s bitcoin adoption to the next level.

Miners to Supply Cryptocurrency Within an Authorized Limit

The IRNA news agency further highlighted that the legal cap for the amount of cryptocurrency for each miner would be determined by the level of the subsidized energy used for mining and based on the instructions from authorities:

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“Based on the laws, cryptocurrencies legally mined in Iran will only be exchangeable when they are used to finance imports from other countries. The miners are supposed to supply the original cryptocurrency directly and within the authorized limit to the channels introduced by the CBI. The legal cap for the amount of cryptocurrency for each miner would be determined by the level of the subsidized energy used for mining and based on instructions published by the Ministry of Energy.”

#Bitcoin Miners #Import funds #Inflation #International trade #Iran
Jafrin Ahmed
Jafrin Ahmed

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.