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Iran has joined the growing list of countries who are embracing crypto after the Asian nation made its first import with crypto assets valued at $10 million.
The Islamic State has been struggling economically after prolonged economic sanctions. This has forced the nation to start using crypto as a medium of exchange for its international trades.
More Goods To Be Imported With Crypto
Iran used to be the leading economy in the Middle East but has fallen behind others in recent times. But this week, in a bid to revitalize the countrys international trade, its Ministry of Industry, Mine, and Trade imported the items, all paid in crypto.
Deputy Minister Alireza Peymanpak assured that smart contracts and digital assets will be widely used in foreign trade in months to come.
Iran has stepped up its support for digital assets after enabling more international trade transactions to be settled in crypto. Last year, the Central Bank of Iran (CBI) allowed licensed miners, currency exchanges, and banks to pay for imports in crypto assets.
This does not mean that the government is in full support of the use of cryptocurrencies in the country. The Iranian authorities have not been kind to players in the industry, especially crypto miners.
Iran Still Hostile To Bitcoin Miners
Last year, Iranian authorities baned all Bitcoin mining operations in the country for four months. The decision, according to the regulators, was taken to ensure the stability of its electricity network. The government stated that miners are taking up a large chunk of the nations electricity supply, which could be catastrophic during its peak summer season.
One month after the ban, 7,000 BTC mining machines were seized by law enforcement agencies in an abandoned factory in Tehran. Last December, the government suspended crypto mining operations for the second time due to electricity blackouts during the summer.
Authorities also pounced on miners again earlier this say, informing them of increased sanctions on illegal BTC miners. Most of the issues have been with crypto mining, with its high power consumption the main problem. The government has also prohibited the use of subsidized electricity for Bitcoin mining.