Blockchain technology and cryptocurrencies have the potential to play an important role in Iran's economy, says an official with the Iran ICT Guild Organization.
"By investing in blockchain technology we can have access to innovation and high-tech, which can [help] replace oil and banks as the main source of income," Ali Pakbakhtegan was quoted as saying by ISNA.
Using cryptos in foreign trade can and should be a key starter for employing cutting-edge technology, he said, referring to the latest decision by the Central Bank of Iran and Iran Trade Promotion Organization regarding legalizing use of cryptos in foreign trade.
"The measure will be finalized soon…the CBI and TPO are sorting out the details.”
However, economists and market analysts argue Iran’s commercial and financial transactions are large to be handled efficiently with the help of digital currencies.
Pakbakhtegan called on the government to pave the way for easing crypto trade in the free trade zones as it would help address problems businesses in Iran encounter in their overseas financial transactions.
Promoting domestic platforms is crucial for supporting Iranian investors because can help prevent seizure of their crypto assets.
"Cryptocurrency can help increase the country's forex income especially during the sanctions era. It also has the potential to create jobs."
Mining virtual currency is legal in Iran and miners are allowed to operate under rules approved by the government in 2019. However, trade in cryptocurrency is banned for domestic payments.
Back in October 2020, the government ratified regulations for legal cryptocurrency mining that allowed digital currency to be used for imports. The measure, proposed by the CBI and Ministry of Energy, required cryptominers to sell the coins they mine only to the CBI.
Last April the CBI said henceforth banks and licensed moneychangers may use cryptocurrency mined by authorized miners in Iran to pay for imports.
After former US president Donald Trump withdrew from the Iran nuclear agreement and imposed tough economic sanctions in 2018, the CBI was urged to allow the use of the blockchain technology to help evade the US restrictions.
Use of cryptocurrency, experts say, can also help Iran expand its presence in targeted export destinations where cryptocurrency is accepted, such as Russia, China and India.
