Iran’s central bank will now legally hold all Bitcoin used for imports/exports allowing them to bypass the USD
Now the Iran has become the first country in the world to use Bitcoin legally for value exchange for imports/exports with other nations.
“The miners are supposed to supply the original cryptocurrency directly and within the authorized limit to the channels introduced by the CBI,” said the report by CBI and the Ministry of Energy.
Basically, The each miner’s legal cap for the amount of bitcoin would be determined by the level of the subsidized energy used for mining and also based on instructions published by the Ministry of Energy.
Iranian currency has drastically fallen in value with inflation there at 34% that’s happening since 2018.
The country has already suffering from US sanctions where they are restricted to use dollars for international trade.
That’s why they choose bitcoin, the first country to do so at a state level, with the famous bitcoin volatility less of a consideration here because the situation is desperate.
The economy of Iran has been contracting since last year, and this year at circa -10% a quarter, making this a depression for them.
However, after some experimentation with bitcoin that was started in 2018, it appears Iran has found a use case in both creating economic value through facilitating bitcoin mining, and now they started to use bitcoin for international trade as well.
For long time, we have only suspected this was their strategy, but now it is in black and white that Iran is bypassing the dollar and other fiat currencies by using bitcoin.