Iran becomes the first country to use cryptocurrency for value exchange at the national level
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Iran becomes the first country to use cryptocurrency for value exchange at the national level
In recent years, Iran's currency has rapidly depreciated, with inflation rates reaching as high as 34%.
Navigating Web3 tides with focused insightsIran has become the first country in the world to use cryptocurrency for value exchange at the national level. According to the official IRNA news agency last Saturday, Iran's cabinet has amended legislation to incorporate cryptocurrency into the Central Bank of Iran's (CBI) import funding mechanism.
"Miners should directly supply original cryptocurrencies to channels introduced by the CBI within authorized limits," said a report jointly issued by the CBI and the Ministry of Energy.
The legal upper limit on the amount of cryptocurrency each miner can provide will be determined by the level of subsidized energy used in mining, based on directives published by the Ministry of Energy.
In recent years, Iran's currency has rapidly depreciated, with inflation reaching as high as 34%, a situation that has persisted since 2018.
The country is under U.S. sanctions, preventing it from using the U.S. dollar for international trade.
As a result, it has turned to Bitcoin, becoming the first nation to do so at the national level—Bitcoin’s notorious volatility being less of a concern given the desperate circumstances.
Iran's economy has been contracting over much of last year and this year, shrinking by approximately -10% per quarter. It is an economy in deep depression.
However, after conducting various cryptocurrency experiments since 2018, Iran appears to have found a viable path forward—generating economic value through promoting crypto mining, and now leveraging Bitcoin for international trade.
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