Iran Completes First International Settlement Using Cryptocurrency

Iran has completed its first international settlement, for approximately $10 million, using cryptocurrencies.
After the adoption of Bitcoin as legal tender, is the next trend going to be settling international payments?

The crypto community is today celebrating a first in the cryptocurrency space following reports that Iran has completed its first international settlement in cryptocurrencies. According to reports, the import payment was worth $10 million. The move followed years of US sanctions which have limited its dollar spending. Since world war 2, the dollar has been the most commonly held reserve currency and the most widely used currency for international trade. Hence, US sanctions have left countries unable to effectively conduct international trade.

The transaction was confirmed earlier today by Alireza Peyman-Pak, Iran’s vice minister of Industry, Mine, and Trade.

این هفته، اولین ثبت سفارش رسمی واردات با #رمز_ارز به ارزشی معادل ۱۰ میلیون دلار با موفقیت صورت پذیرفت. تا پایان شهریور ماه، استفاده از رمز ارزها و قراردادهای هوشمند به صورت گسترده در تجارت خارجی با کشورهای هدف عمومیت خواهد یافت. #فصل_جدید_تجارت_خارجی
— علیرضا پیمان پاک🇮🇷 (@peymanpak_ir) August 9, 2022

Iran Embraces Cryptocurrencies

Earlier in the year, the Central Bank of Iran (CBI) and the Ministry of Trade allowed businesses in the country to settle international payments using cryptocurrencies. The authorities have been keen to keep its trading system going amidst mounting pressure from the US.

The country has also been encouraging crypto mining which has seen the country attract new revenue and the government charges taxes on licensed mining firms. Last year, it was widely reported that the country accounted for nearly 5% of all the Bitcoin mining activity.

The US has in the past raised concern about countries evading sanctions using cryptocurrencies. Most recently, heightened crypto activity in Russia has suggested that it is the latest in a growing list to use digital assets to evade US pressure. Others, led by China, are quickly developing their own national digital asset in the form of a central bank digital currency (CBDC). These tokens, if widely adopted, will allow for fast, transparent, international settlements without necessarily the use of the super dominant dollar.