Iran using cryptocurrency for imports to bypass US sanctions -

Tehran: US sanctions have made it difficult for Iran to trade in dollars. In such a situation, Iran has started using cryptocurrency for its imports. Alireza Peyman-Pak, Deputy Minister of Industry, Minerals and Trade of Iran, informed that Iran had ordered imports worth $10 million through cryptocurrency. This decision of Iran is being claimed to be very adventurous.

The United States and European countries have accused Iran for several years of using its nuclear program to develop nuclear weapons. The United States and European countries had imposed severe economic sanctions on Iran to stop the Iranian nuclear program. The United States imposed sanctions targeting Iranian fuel, banking and shipping sectors. This had a direct impact on Iran’s economy. Massive inflation has flared up in Iran, and the people harassed because of this started protesting strongly against the government of Iran.

Moreover, Iran signed the nuclear agreement in 2015, so Western countries should withdraw their sanctions. After this, the United States and European countries gave Iran concessions in the sanctions. But some Iranian leaders called for an exit from the deal, saying these concessions are not enough to boost the Iranian economy. At the same time, these leaders suggested the option of dealing and trading in other currencies as an alternative to the USD. Just a few weeks ago, Iran discussed trading with Russia in Rouble.

Along with this, Iran has decided to denominate its imports and further trade in cryptocurrency. Alireza informed that Iran has accordingly placed the first import order worth $10 million and this transaction will be completed by the end of September. There were earlier reports of Iran mining crypto domestically. A report revealed that Iran accounted for four and a half per cent of the total crypto mining done worldwide last year.

The negotiations between the United States and the West on the nuclear deal with Iran are not over. A proposal was recently given to Iran in this regard and Iran is considering it. In such a situation, the use of cryptocurrency by Iran becomes a significant issue. The United States also resents moves by oil-rich countries to use other currencies as an alternative to the USD.

Former Iraqi dictator Saddam Hussein decided to sell fuel from his country in Euros instead of dollars. After that, the United States overthrew Saddam’s regime. In such a situation, it seems that Iran has provoked the United States by starting the use of cryptocurrency. A lot will depend on the US reaction to this.