Iran is also looking into the advantages of cryptocurrencies to escape the harsh effects of US sanctions. According to the Central Bank of Iran (CBI), banks and approved miners will be able to use cryptocurrencies to pay for imports, according to the Central Bank of Iran (CBI). According to a study from the Iranian financial site Tribune, the CBI has released a notice and approved exchanges regarding the new regulatory structure for crypto payments. The government is expected to pass a bill soon that will clarify the regulatory framework in the country.
The tensions between the United States and Iran have gotten worse over time, and the US Treasury Department has effectively crippled Iran’s economy, which is heavily reliant on foreign trades. Iran has been looking into the advantages of cryptocurrencies and how they can help the country avoid sanctions. On October 29, 2020, Iran became the first country to accept Bitcoin as a medium of exchange.
The government had given over 1,000 licenses for crypto mining equipment and had also offered miners power plants. In Iran, crypto mining is legal, but each miner must obtain a permit from the Ministry of Industry, Mine, and Trade. Licensed miners must sell mined Bitcoin to Iran’s Central Bank through the entity’s given channels.
Iran’s relationship with cryptocurrencies was abrasive at first, and mining cryptocurrency was prohibited until 2019. Local authorities seized 45,000 BTC mining rigs in January this year after several blackouts were recorded across the region. Iran isn’t the first nation to use cryptocurrency as a means of evading US sanctions. Venezuela is one of the most active countries in this region, and it does exchange BTC in LocalBitcoin, a marketplace.
Many savers and investors in Argentina, currently undergoing a severe financial crisis, turn to cryptocurrency as an alternative. Argentinians also are flocking crypto exchanges and marketplaces to buy and sell crypto assets and hedge against currency inflation. They also noted that laws governing how bitcoin can be used would only encourage bitcoin miners in Iran to go underground.