Iran to Allow Crypto Payments for Imports

Iran to Allow Crypto Payments for Imports

Iran is taking steps to make crypto payments easier for companies importing goods into the sanctioned country. A dedicated platform has been established to allow companies and business establishments to transfer cryptocurrency for cross-border settlements.

CBI Permits Use of Crypto in Import Settlements

The Trade Promotion Organization in Iran has announced that companies can pay for imports in cryptocurrencies. Alireza Peymanpak, head of the organization, has announced that the Central Bank of Iran (CBI) has permitted the use of cryptocurrencies in settlements for imported goods.

"The Economy Ministry will take the final decision," Peymanpak said, as the official Economy and Bank of Iran News Network (Ibena) reported on Sunday.

Peymanpak had earlier announced that Iran placed its first official import order in cryptocurrency in August 2022 and revealed the deal was valued at USD 10 million in goods.

"By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries," he tweeted at the time.

Peymanpak has now revealed that a dedicated platform has been established to allow local companies to pay foreign suppliers with digital coins. He said:

"Businesses can use the platform to transfer cryptocurrency to settle import bills."

Iran Establishes Platform for Crypto Payments

Iran has established a platform to transfer crypto payments for cross-border settlements. The platform is linked to the Comprehensive Trade System and the Central Bank of Iran's Currency Allocation Platform to augment money transfers using cryptocurrency.

The Trade Promotion Organization (TPO) is affiliated with the Ministry of Commerce in Iran and is responsible for promoting the non-oil exports of the Islamic Republic.

The use of digital assets may be subject to restrictions in trading with countries such as Iraq, Afghanistan, and Pakistan, but can help Iran in export destinations such as China, India, and Russia, reported the English daily Financial Tribune in a report.

Russia has been the target of Western sanctions since last year, after the invasion of neighboring Ukraine and the imposition of several rounds of sanctions.

Officials in Moscow have been exploring the option of limiting the legalization of cryptocurrencies to allow Russian companies to settle international transactions and evade restrictions on traditional financial transactions.

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