Amid Sanctions, Iran’s Central Bank to accept Bitcoin for Imports

News / 29.10.2020

According to a report by official IRNA (Islamic Republic News Agency), the Iranian cabinet has amended the legislation to accept Bitcoin to fund its import. As per the Ministry of Energy report, the miners in the country are directed to transfer the Bitcoins to the Central Bank of Iran. The newly amended legislation will allow the country’s central bank to channel these funds for imports.

Surviving under the sanctions

This comes amid the sanctions imposed on the Asian country by the United States. Notably, Iran is also among the top contenders of hash wars between the countries such as the US, China, Russia, and Malaysia. Last month, the Iranian government gave its node to supply electricity to Bitcoin miners from its biggest power holding company and power stations.

Funding imports via Bitcoin

Under this legislation, the country’s legally mined cryptocurrency will only be used for financial imports from other nations. Simultaneously, the Ministry of Energy will also determine the legal cap for the amount of cryptocurrency. It will be following subsidized energy used by the miners. In August 2017, the Iranian government made it legal to hold and mine cryptocurrencies after being illegal for a long-time. At the same time, the government also did a nationwide crackdown on illegal miners making use of subsidized electricity. However, it’s worth clarifying that the government heavily regulates cryptocurrency mining.

This amendment comes as jointly proposed by the country’s central bank and the cabinet. With this legislation, Iran has become the first sovereign nation to hold Bitcoins. The country has been struggling with its economic conditions due to US sanctions and Pandemic. The inflation rate is continuously rising with its currency Rial plummeting in value against the US dollar. Therefore, the government is increasingly showing interest in cryptocurrencies in the way of keeping its economy alive.

Narender is a digital nomad & crypto writer. He's currently living in this small Himalayan village with a perfect balance of wilderness and an LTE network. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"