The Central Bank of Iran (CBI) and the Ministry of Trade of Iran have reached an agreement with local firms to allow the use of cryptocurrencies in international trade.
The proposed method, according to Iran’s state-run Mehr News Agency, will link CBI to the country’s Comprehensive Trade System and allow enterprises to settle payments using cryptocurrencies in international trade.
The breakthrough comes as Iran looks for new ways to get around economic sanctions imposed by the United States in 2012 in response to its nuclear activities and worldwide concerns at the time.
According to the Tehran Times, the decision was made last week by Alireza Peyman Pak, the deputy minister and head of Iran’s Trade Promotion Organization, an affiliate of the Ministry of Commerce. He stated, “We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptos in their international deals.”
Iran’s position on cryptocurrency has altered significantly in recent years. In May of last year, the Iranian government banned the domestic sale of crypto assets obtained from foreign sources in an effort to curb capital flight, which the government views as undermining the Iranian Rial.
The prohibition came just a month after Iran’s central bank said that licenced institutions and money changers could use locally generated cryptocurrency to avoid US sanctions and boost economic activity.
To read our blog on Iran bans crypto mining after summer power cuts strike early, click here.
