- The Iranian authorities are apparently planning how to incorporate cryptocurrencies into their international commercial payment system.
- Tighter regulations on digital currencies are expected as the government works to protect illegal cryptocurrency miners.
As a measure to support its trading system, Iran is devising ways in which importers and exporters can use cryptocurrencies in their transactions.
The Central Bank of Iran (CBI) and the Ministry of Commerce have reached a consensus to link the bank’s payment infrastructure to a cryptocurrency trading system. This will enable payments to be settled in digital currencies, according to a report Monday from the Mehr News Agency. An excerpt from the report says
All cryptocurrencies can use these cryptocurrencies. The trader accepts the ruble, rupee, dollar or euro, which he can use to acquire cryptocurrencies such as Bitcoin, which is a form of credit, and which he can pass on to the seller or importer. […] Because the cryptocurrency market is made on credit, our economic actors can easily use it and use it wisely.
Iran formulates crypto payments in international trade
The new payment mechanism will be completed «within two weeks,» says Alireza Peyman-Pak, Iran’s deputy minister of industry, mines and trade, and also leader of its Trade Promotion Organization (TPO). Peyman-Pak has said;
We are finalizing a mechanism for operating the system. This should provide new opportunities for importers and exporters to use cryptocurrencies in their international markets.
In addition, he urged the government to pay attention to the economic and business opportunities offered by the cryptocurrency industry. In this sense, he mentioned the major cryptocurrencies, such as Bitcoin.
Disruption of control and power
The Middle Eastern country has had some uncertainties regarding its crypto industry. At the end of last year, one of the nation ‘s largest blockchain organizations raised concerns about upcoming tighter crypto regulations. In addition, its Bitcoin mining sector is volatile due to excessive power consumption and consequent extreme temperatures. Power outages prompted authorities to impose a three-month ban on cryptocurrency mining, but it was achieved in October 2021.
However, crypto mining companies were required to obtain operating licenses from the Ministry of Industry, in accordance with the 2019 law. Due to their high energy consumption, cryptocurrency miners are required to pay additional fees compared to other consuming activities. less energy.
To escape additional costs, some mining operations are carried out illegally, feeding on subsidized electricity and regularly overloading the power grid. A senior executive at the Tehran Stock Exchange was forced to resign in October after illegal cryptocurrency mining operations were discovered on the company’s premises. A report reveals that illegal miners ate $ 16.5 million in energy subsidies, causing $ 1.3 million in damage to the national grid. For this reason, the Iranian government often charges electricity to Bitcoin miners.