Iran’s Central Bank, Ministry of Industry to Allow Crypto Payments for Foreign Trade Settlements

A mechanism will reportedly be put in place enabling local merchants to settle payments with international partners through the use of crypto

article-image

Tehran, Iran. Credit: Unsplash.

share

key takeaways

  • The Central Bank of Iran and the Country’s Ministry of Trade have reached a deal that would allow local merchants to use crypto for their international trade deals
  • The deal comes as Iran seeks out measures to circumvent decade-long US economic sanctions relating to Iran’s nuclear activity

Iran’s central bank and the country’s Ministry of Industry, Mine and Trade have agreed to a deal that will enable local merchants to begin using cryptocurrencies for foreign trade settlements, according to local media reports.

A mechanism, finalized during the first meeting of a joint foreign currency working group between the bank and the ministry, will involve linking the bank’s crypto platform with Iran’s Comprehensive Trade System, the Financial Tribune reported Monday.

The system will allow local businesses and merchants to settle payments with international partners when using crypto. Further details on when the deal would come into effect have not been provided.

The deal comes as Iran continues to explore means to circumvent economic sanctions, imposed by the US in 2012, over Iran’s nuclear activity and the international community’s concerns relating to the country’s nuclear program at the time.

Alireza Peyman-Pak, the ministry’s deputy minister and head of Iran’s Trade Promotion Organization, an affiliate of the Ministry of Commerce, made the announcement via his social media account on Friday, the Tehran Times reported the same day.

“We are finalizing a mechanism for operations of the system.” Peyman Pak said, per the Tribune’s report.

“This should provide new opportunities for importers and exporters to use cryptos in their international deals.”

Iran’s stance towards crypto has oscillated in recent years. In May of last year, Iranian authorities banned the domestic trade activity of crypto assets obtained from outside the country’s borders in an attempt to slow capital flight — viewed as depreciating the country’s currency, the rial.

That move came a month after the central bank said licensed institutions and money changers could make use of crypto mined by Iranian miners in a bid to navigate the country’s sanctions and promote economic activity.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million