Iran’s Trade Promotion Organization (TPO) Looks To Use Crypto Assets With 8 Countries For Economic Trade

Iranian Government Looking To Make Use Of Alt-Currencies For Economic Trade

In a piece of highly welcome news for the crypto sector, it has just come to light that Iran is now looking to explore options (including talks with other nations) that will help it become a prominent member of the global crypto ecosystem. This entire exercise is being carried out as a means of sidestepping existing US economic sanctions that were levied against the middle-eastern nation last year.

In regards to the matter, Mohammad-Reza Modoudi, Head of Iran’s Trade Promotion Organization (TPO), was quoted as saying that his country was currently in talks with “eight other nations” so as to figure out a way in which to do business with one another using only digital assets.

Iran Hopes To Destroy U.S. Dollar’s Current Market Dominance

In an interview with a respected media outlet, Modoudi was quoted as saying:

“Representatives from Switzerland, South Africa, France, England, Russia, Austria, Germany and Bosnia have visited Iran to hold related talks about the issue.”

Additionally, on the matter, Modoudi said that he was confident that Iran could lure in big-name nations to do business with it and in the process loosen the grip that the US Dollar currently holds over the international market at large.

For those of our readers who might not be aware, last November, the US government decided to impose a host of stringent economic sanctions against Iran— thereby cutting the world off from the country’s oil, shipping and gas market. As a result of this, the Islamic nation has been subject to a lot of financial pressure— especially since even crypto trading platforms such as Binance and Bittrex have unofficially dropped Iran from their supported country lists.

More On The Matter

As a result of all the economic restrictions on Iran, the nation is now hoping to make use of virtual currencies and leverage their power to “compensate for the squeeze in petrodollars arising from the aforementioned sanctions”. Additionally, it is also worth mentioning that since mid-2018, the Iranian government has been actively working to create its very own cryptocoin (an entity whose value will allegedly be pegged to the Rial).

If that wasn't enough, recently Russian President Vladimir Putin came forth and claimed that his country was “actively looking to create” a financial system that was fully independent of the currently popular Swift protocol. This announcement was made right after Iran agreed to sign a “trilateral blockchain cooperation agreement” with Russia and Armenia.

Iran Is Looking To Establish A Crypto-Framework Soon

At this point in the article, it is worth mentioning that the Central Bank of Iran (CBI) has recently published a draft version of its envisioned cryptocurrency framework. In this regard, a report by Al Jazeera released a couple of days states that Iran has reversed its previous ban on digital assets “but still has certain restrictions on the use of digital currencies in place”.

A spokesperson for the CBI also said that the aforementioned framework is designed primarily to “organize and define boundaries for ongoing crypto operations in the country, and allow traders to plan for their future.”

With that being said, the spokesperson then went on to add:

“Using global cryptocurrencies as methods of payment inside the country is prohibited.”

Other Key Details Worth Noting:

  • Citizens of Iran are not allowed to possess crypto assets that exceed an evaluation of €10,000.
  • To date, altcoins cannot be used within the nation for facilitating regular/everyday payments.

Final Take

In closing out this article, it is worth mentioning that Iran alone is responsible for the exchange of $10 million worth of BTC on a daily basis despite the Islamic Republic banning the buying/selling of alt-assets via its traditional banking channels early last year.

Last but not least, in an interview with Al Jazeera, a local trader by the name of ‘Perhman Azhdarpour’ was recently quoted as saying:

“The ban on using internationally accepted cryptos as payment methods can negatively affect the work of me and many like me. We were hoping the central bank’s stance would not again restrict the use of bitcoin and other cryptocurrencies in any way.”

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