Iran this week placed its first import order using cryptocurrency to avoid US sanctions that have damaged its economy, Tansim news agency reported on Tuesday, as cited by Reuters.
The $10 million order is the Islamic Republic’s first step toward using digital assets to broker trade deals that bypass the dollar-dominated global financial system and strike deals with other countries hit by U.S. sanctions, such as Russia.
The news comes as the Washington administration accuses Tehran of preparing to deliver hundreds of combat drones to Russia for use in the war in Ukraine, now in its 167th day.
Tansim, the Iranian government’s semi-official news agency, did not specify which cryptocurrency was used for the transaction, but an official from Tehran’s Ministry of Industry, Mining and Trade later said on Twitter that by the end of September, Iran will widely use cryptocurrencies and smart phones. contracts in trade relations with foreign countries.
The United States has imposed an almost complete economic embargo against the Islamic Republic, with sanctions covering all Iranian oil imports, the financial sector and shipping.
Is Iran giving up cryptocurrencies?
Iran is one of the biggest countries in the world that has so far refused to embrace crypto, but a study published last year found that up to 4.5% of the world’s bitcoin mining activity takes place in the country, in part due to low electricity prices. .
Cryptocurrency mining can help Iran raise hundreds of millions of dollars, which can then be used to import goods and mitigate the effects of US sanctions.
El Salvador, the first country in the world to adopt Bitcoin as an official currency last year, is now at risk of bankruptcy amid the widespread collapse of the cryptocurrency market.
The European Union announced on Monday that it had sent the Iranian side a “final” text aimed at restoring compliance with the Iran nuclear deal, a document proposed after four more days of indirect talks between Washington and Tehran in Vienna.
The 2015 deal committed Iran to curtailing nuclear research and uranium enrichment activities, but it was denounced four years ago by former US President Donald Trump, who accused Tehran of not complying with its terms.
Source: Hot News RO
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