The Central Bank of Iran (CBI) and the Ministry of Trade of Iran have reached an agreement with local businesses to allow cryptocurrencies to be used in international trade.
The proposed mechanism, according to the state-run Mehr News Agency, will connect CBI to Iran’s Comprehensive Trade System and allow businesses to settle payments using cryptocurrencies.
The development comes as Iran seeks additional ways to avoid economic sanctions imposed by the United States in 2012 in response to its nuclear activities and the international community’s concerns at the time.
According to the Tehran Times, Alireza Peyman Pak, the deputy minister and head of Iran’s Trade Promotion Organization, an affiliate of the Ministry of Commerce, made the decision last week. “We are finalising a system operation mechanism.” “This should open up new opportunities for importers and exporters to use cryptocurrency in international transactions,” he said.
In general, Iran’s stance on cryptocurrencies has shifted in recent years. In May of last year, its authorities prohibited the domestic sale of crypto assets sourced from foreign sources in an effort to limit capital flight, which the government sees as weakening the Iranian Rial.
Surprisingly, the ban came just a month after Iran’s central bank announced that regulated institutions and money changers could use locally mined cryptocurrencies to avoid US sanctions and stimulate economic activity.