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Crypto Assets Can Open International Trade for Iran

1 November 2020, 11:17
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As Iran is still under strict financial sanctions, the state governors decided to rely on cryptocurrencies for international trade. The Central Bank of Iran and the local Ministry of Energy forced the adoption of crypto assets usage to pay for imported goods. That is a logical continuation of former Iran's attempts to legalize cryptocurrencies on the state level.

Crypto Assets Can Open International Trade for Iran

The suspicious activity led Iran to massive international isolation and trade sanctions. However, the government decided to pay attention to the crypto assets as the way to continue interstate commerce. The Ministry of Energy and the state's Central Bank approved the usage of cryptocurrencies to pay invoices.

The latest cryptocurrency news has already reported about the differences between digital money and crypto-assets. Although cryptocurrencies and digital money can be used as synonyms, but not in this case. Digital assets pass strict Anti-Money Laundering checks and Know Your Customer procedures, while cryptocurrencies are far from adopting similar requirements. That is why everyone can use mined assets for transactions and be invisible to outside control.

That is not the first step made by Iran in this regard

Iranian governors faced the problem of international trade isolation years ago, so they started the procedure of adopting cryptocurrencies much earlier. At the beginning of 2020, the country declared the desire to bypass sanctions, and a few months later, they allowed mining.

Adding cryptocurrencies to their financial system allows paying for imported products while staying invisible for the outside traders and global financial control. In Iran's case, it seems to be the only way to deal with the isolation trade issue. At the same time, it allows understanding the power of cryptocurrencies and the need to provide some control, at least, as full anonymity is often related to illegal and dangerous transactions.

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