The use of cryptocurrencies for payments in Iran's import and export sector continues to attract the interest of the country's government.
Iran Trying to Overcome the Embargo with Cryptocurrencies
According to local media sources, the long-standing issue has been delayed by the need to establish a legal system and mechanism to facilitate the use of cryptocurrencies.
However, the mechanism is expected to be implemented shortly after being reviewed by the Ministry of Economy.
While the plan is expected to be implemented in the fall of 2022, the security of foreign trade using cryptocurrencies will be the responsibility of the Central Bank.
This move aims to revive the country's economy, which is under pressure due to the economic sanctions imposed by the USA.
Cryptocurrencies offer several advantages over traditional payment methods, such as lower transaction fees, faster payment times, and greater security.
By using cryptocurrencies to close accounts, Iran hopes to bypass the traditional banking system constrained by economic sanctions.
However, there are difficulties in using cryptocurrencies for foreign trade. Cryptocurrencies are still largely unregulated and their values are highly volatile, which can lead to price fluctuations and other risks.
Also, the use of cryptocurrencies for illegal activities such as money laundering and terrorist financing has been a concern for governments around the world.
To address these concerns, the Iranian government will need to establish a legal framework and mechanism to ensure the security and transparency of cryptocurrency transactions.
The country's central bank will play a critical role in monitoring and regulating the use of cryptocurrencies in foreign trade.
*Not investment advice.
