Iran to Use Bitcoin for International Trade, Bypassing the Dollar Due to US Sanctions

CRYPTONAIRE LYWEEK CRYPTO investment journal

With the latest amendment to the legislation, Iran has become the first country to use cryptocurrencies at a state level for import funding.

The Iranian Cabinet amended legislation to redirect digital currencies into the funding mechanism of the Central Bank of Iran (CBI) for imports, as per the report by the official The Islamic Republic News Agency (IRNA). The report by the CBI and the Ministry of Energy said,

“The miners are supposed to supply the original cryptocurrency directly and within the authorized limit to the channels introduced by the CBI.”

The limit on crypto for every miner will be decided by the level of the subsidized energy used for mining and the Ministry of Energy’s instructions.

This could create a war of hash rate in the Bitcoin space as China continues to lose its share while Kazakhstan, Iran, Malaysia, and Canada record an increase, as per Cbeci.org.

Iran’s share particularly has increased by over 2% in April 2020 from 1.74% in Sept. 2019.

Iran’s cryptocurrency move isn’t new and is a necessity for a country that is strapped for international currencies. In August 2019, it officially legalized crypto mining but banned trading in an attempt to take advantage of its subsidized electricity and extract taxes. Read more...