Sunday, January 29

The Central Bank of Iran will allow payments with cryptocurrencies for international economic agreements

The Central Bank of Iran (CBI) and the Ministry of Commerce. They have reached an agreement to link the CBI payment platform to a trading system that will allow Iranian companies to make and receive payments using cryptocurrencies. This was informed on Monday by the Mehr news agency.

Alireza Peyman-Pak, Minister of Industry, Mines and Trade of Iran and Director of the Iran Trade Promotion Organization (TPO). He said that the new payment mechanism is expected to start operating within the next two weeks.

“This new payment system should provide new opportunities for importers and exporters to make use of cryptocurrencies in their international agreements.” Peyman-Pak said.

He also added that the Iranian government should not ignore the new economic and commercial opportunities of the crypto industry. Referring mainly to cryptocurrencies such as Bitcoin.

“All economic actors can use these cryptocurrencies. Traders take the ruble, rupee, dollar or euro, which they can use to obtain cryptocurrencies like Bitcoin, which is a form of credit and can be passed on to the seller or importer. Since the cryptocurrency market is done on credit, it can be easily used and widely used by our economic actors.” Peyman-Pak added.

The cryptocurrency industry in Iran has been plagued by uncertainty. As Iran’s leading Blockchain organization raised concerns about the application of certain regulatory rules on cryptocurrencies by the end of 2021. In addition, the Iranian government has also been implementing regulated power outages to local Bitcoin miners.

While Bitcoin mining in Iran is authorized by the Central Bank. The operation of this industry seems to be destined to depend on the seasons of the year.

In fact currently, the mining operations of Bitcoins and other cryptocurrencies are currently paralyzed during the winter. According to the Iranian government, cryptocurrency mining activities have caused numerous power outages, negatively affecting the country’s heating systems.

The same thing happened last year, but this time it was for the summer. In May 2021, Bitcoin mining operations were restricted, due to the increase in electrical energy consumption that occurs during that season. Since due to the high temperatures in the territory, the use of air conditioners in homes increases.

Not only did Iran blame cryptocurrencies for power outages, the same situation has happened in countries like Kosovo and Argentina. In both countries, energy problems are attributed to Bitcoin mining. And not to the lack of investment in the electricity sector by the authorities of the affected countries.