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Iran circumvents sanctions, pays for $10 million import order with cryptocurrency for the first time

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Iran circumvents sanctions, pays for $10 million import order with cryptocurrency for the first time

Iran, which has long been subjected to U.S. trade sanctions, finally completed its first import order paid with cryptocurrency in early August. According to Alireza Peyman-Pak, the Deputy Minister of Industry, Mining, and Trade of Iran, the country used cryptocurrency worth $10 million to complete the payment and stated, "By the end of September, cryptocurrencies and smart contracts will be widely used in Iran's foreign trade with target countries."

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Alireza Peyman-Pak shared this message on Twitter, but did not disclose any details about the imported goods involved, only mentioning an increase in order volume next month.

Iran was originally the most heavily sanctioned country in the world, but after the Russia-Ukraine war, Russia has replaced Iran as the most sanctioned country. According to Trading Economics data, Iran imports 25% of its goods from China, 14% from the UAE, followed by India, Turkey, and Germany.

Source: tradingeconomics

In 2017, Iran was ready to accept cryptocurrencies. In October 2020, it officially allowed the use of cryptocurrencies to finance imports. The Iranian Ministry of Trade then issued 30 operational licenses to Iranian miners to mine cryptocurrencies domestically, but they must sell them to the Central Bank of Iran. The Iranian government now uses these mined bitcoins for import payments.

In 2021, Iran mined 4.5% of the bitcoins for that year, along with other cryptocurrencies, earning at least hundreds of millions of dollars in crypto assets.

In the 2015 trilateral agreement between the United States, the European Union, and Iran, Iran promised to limit nuclear weapons development in exchange for economic sanctions relief. However, former U.S. President Trump broke the agreement and reinstated sanctions on Iran in 2018, prompting Iran to embrace cryptocurrencies while continuing its nuclear development.

This article is authorized for reprint from Horizon News Network.