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Iran is making it easier for local businesses to pay for imported goods using cryptocurrencies with the establishment of a specialized platform. The purpose is to facilitate cross-border settlements and transfers for companies in the sanctioned country. Alireza Peymanpak, head of Iran’s Trade Promotion Organisation, said that the country’s Central Bank has granted permission for the use of crypto in payments for imported goods. A new platform has been created to help local companies that wish to pay foreign suppliers with digital coins. The platform is linked to Iran’s Comprehensive Trade System and the Central Bank’s Currency Allocation Platform, according to Peymanpak.
Crypto may face restrictions when it comes to trading with certain countries, such as Afghanistan, Iraq and Pakistan. However, Iran is keen to use digital currencies to trade with countries such as Russia, China and India, where they are already being utilized. Alireza Peymanpak, who heads the government body, also announced in August that cryptocurrency was successfully used to place Iran’s first-ever official import order worth $10m. He stated recently considering making widespread use of cryptocurrencies and smart contracts in foreign trade by September.
Similarities with Russia
Russian policymakers are also considering limited legalization of cryptocurrencies to help domestic companies deal with foreign firms more effectively. The move is a reaction to the squeezing of traditional financial transactions with international partners due to Western sanctions. Russia, alongside Iran, has been targeted by sanctions on several occasions due to its involvement in international disputes. Upgrades to existing settlements agreements between Iran and other sanctioned countries are expected as a result of the new cryptocurrency payment system, although there could be regulatory stumbling blocks encountered, according to the Financial Tribune.