Iran settled trade deals worth $10 million in crypto. In a tweet, the country’s deputy minister in the Ministry of Industry, Alireza Peymanpak, revealed that an import order settled with virtual currencies “was successfully placed.”
Peymanpak added that Iran is preparing to increase the country’s crypto’s use in trades with specific nations. He also hinted at heavy reliance on smart contracts in foreign trade from now on.
The Islamic Republic’s successful use of virtual currencies in foreign trade has come more than a year since the country started exploring the possibility of incorporating crypto into international transactions. Last year, Iran’s central bank, CBI, allowed licensed traditional financial organizations to use crypto to pay for foreign purchases.
The latest move is a culmination of critical actions by the country’s government in the last five years. It started in 2017 when the government revealed its plans to support Bitcoin (BTC).
In the following years, it legalized crypto mining and licensed more than 30 miners. However, some unauthorized miners wreaked havoc on the country’s power grid, causing outages across the country.
Iran conducting its foreign trade with crypto comes even as it’s suffering from decades of economic sanctions. The west Asian country is the second most sanctioned nation after Russia. The Islamic republic mainly trades with Turkey, China, United Arabs Emirates (UAE), Germany, South Korea, and India.
Trading Economics lists China at the top, accounting for 25% of Iran’s imports. The UAE comes next at 14%, India at 6.5%, Turkey at 6.3%, Germany at 6.0%, Switzerland at 5.1%, and South Korea at 5.0%. The Islamic republic also imports goods from Russia, the United Kingdom, Russia, Italy, Singapore, Austria, Brazil, and Japan.
However, Peymanpak didn’t disclose the crypto used to pay for the imports, the goods in the order, or the country/countries where the goods originated. Earlier this year, Iran explored a CBI-backed virtual currency to boost its financial network.