Iran is taking significant steps to facilitate the use of cryptocurrencies for local businesses importing goods into the country. A specialized platform has been established, allowing companies to transfer cryptocurrencies for cross-border settlements. Alireza Peymanpak, head of Iran’s Trade Promotion Organization (TPO), confirmed that the Central Bank of Iran (CBI) has granted permission for the use of cryptocurrencies in settlements for imported goods. He added that the final decision would be made by the Economy Ministry.
This development comes after Peymanpak announced that Iran had placed its first official import order in cryptocurrency in August 2022, amounting to $10 million worth of goods. He has now revealed that a dedicated platform has been created to connect local companies wishing to pay their foreign suppliers in digital currency. The platform, linked to Iran’s Comprehensive Trade System and the CBI’s Currency Allocation Platform, aims to streamline money transfers using cryptocurrencies.
The TPO, an affiliate of Iran’s Ministry of Commerce, has the primary responsibility of promoting the country’s non-oil exports. While the use of cryptocurrencies may be subject to certain restrictions in trade with countries like Iraq, Afghanistan, and Pakistan, they could significantly aid Iran in export destinations where digital currencies are in use, such as China, India, and Russia.
Similar to Iran, Russia has also experienced the repercussions of Western sanctions, primarily due to its involvement in the ongoing conflict in Ukraine. As a result, policymakers have been considering the limited legalization of cryptocurrencies, allowing Russian companies to use them in international settlements with trading partners abroad. This move could potentially circumvent mounting restrictions on traditional financial transactions.
The implementation of cryptocurrency payments for imports could usher in a new era of decentralized finance in international trade. However, concerns about the transparency and regulatory oversight of such transactions can lead some to question if the future of such practices remains uncertain. The pros and cons of adopting cryptocurrencies in import settlements will undoubtedly continue to be a subject of discussion among financial experts and government officials.