This country is embracing bitcoin (BTC) to fund imports

Banks and forex platforms in Iran are now allowed to pay for import products with bitcoin (BTC). This is evident from reports from the Iranian financial news platform Financial Tribune. The ability to import products such as commodities with bitcoin could help the country mitigate damage from international sanctions.

The message shows that banks and forex platforms are now allowed to use bitcoin for import. However, they may only use bitcoins mined by licensed bitcoin miners. At this time, no further details are known of the new framework implemented by the country’s central bank.

Iran has been looking at bitcoin as a possible outcome for some time. In July last year, the government announced that power plants, among others, may start their own bitcoin mining operation. For this they need the correct permits to do business with the above parties.

Not long after, in October, the government passed a bill that would make financing imports with BTC legal. However, licensed miners in the country are only allowed to sell their BTC to the central bank and thus banks are only allowed to use BTC sourced from licensed miners.

While it may be a positive step for bitcoin adoption, the underlying reason is less positive. The country has received several sanctions. For example, it would not have adhered to the agreements on uranium enrichment.

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