Iran Is Buying Bitcoins From Miners to Fund Imports
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Iran Is Buying Bitcoins From Miners to Fund Imports

October 31, 2020      Jafrin Ahmed

The government of Iran has reportedly amended a new cryptocurrency regulation that requires licensed miners to sell their bitcoins directly to the central bank to fund imports. The move intends to use cryptocurrencies as a tool to evade international sanctions.

Miners to Sell Crypto Coins Within an Authorized Limit

Earlier this week, the state-backed IRNA news agency reported that the Central Bank of Iran and the Ministry of Energy amended a new law that requires legally registered Iranian miners in the country to sell their crypto coins such as bitcoins directly to the central bank.

The amendment was jointly proposed by the Iranian central bank and its cabinet. As per the report, Iranian miners need to supply their crypto coins directly to the central bank within an authorized limit.

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However, the concerned authorities have not disclosed any further details required pertaining to the recent move. Although, the central bank did hint that the miners will be given a specific channel to enable sending the cryptocurrencies directly to them.

Mehr news agency quoted Mostafa Rajabi Mashhadi, the deputy head of Iran’s Power Generation, Distribution, and Transmission Company and the spokesperson for the power industry, saying:

“These cryptocurrencies can be exchanged according to the regulations set by the central bank.”

Bitcoins Can Improve Economy in Iran

Iran’s recent moves are in part with countries such as Venezuela that have used the same strategy in using cryptocurrencies to evade sanctions during international trade.

Last year, Iran’s government officially legalized cryptocurrency mining in their country. The bitcoin mining regulation further enabled miners to obtain the necessary licenses from the Ministry of Industry, Mine, and Trade.

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Meanwhile, Iran had recently switched its primary reserve currency from USD to the Chinese yuan. This resulted in the country’s foreign reserve to crash by over 33 percent in the past two years alone. Iran’s intention to use cryptocurrencies to fund imports can perhaps turn things around for the good.

#bitcoin #Bitcoins in International sanctions #Central Bank of Iran #Cryptocurrencies #Iran Bitcoin miners
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. Being a HODLer she takes a keen interest in following the volatile Bitcoin charts. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.