Iran becomes the first country to use Bitcoin as an exchange medium within its jurisdiction. The move came due to the renewed waves of US Sanctions as we are reading more in today’s bitcoin news.
After the newly imposed sanctions by the United States Treasury Department earlier this week, Iran becomes the first country to use Bitcoin as a medium of exchange or for cross-border settlements as the reports showed. The Iranian government amended the crypto regulations so that the miners in the country can redirect cryptocurrencies to the finance mechanism of Iran for international trades as the country’s fiat currency continues to suffer from US sanctions as well as the coronavirus pandemic.
The amended legislation was a joint proposal by the Central Bank of Iran and the Iranian Ministry of Energy as Iran Mail wrote, citing a report from the Islamic Republic News Agency. The regulation outlined that only legally mined cryptocurrencies in Iran will be used for financing imports from other countries. This means that the crypto miners have to sell mined BTC directly to the Iran central bank:
“The miners are supposed to supply the original cryptocurrency directly and within the authorized limit to the channels introduced by the CBI.”
The legal cap for the miners will be based on the level of subsidized electricity that they will consume in their mining process and instructions from the Ministry of Energy as well. Bitcoin trading was initially illegal in the country until 2019 when the government decided to create a regulatory framework for cryptocurrencies. Iran’s government even provided exclusive energy for the miners to encourage the crypto mining operations but to also discourage illegal mining. After issuing more than 1000 licenses for Bitcoin and crypto mining equipment in January, the government announced last month that they will offer three power plans to miners in the country.
With the renewed US Sanctions imposed upon Iran, the US dollar is acting as a vehicle currency on the global market so Iran believes that using Bitcoin will help them boycott the restrictions imposed by the Trump administration. This makes Iran the first country in the world to declare Bitcoin as an international medium of exchange while other countries are hard at work to develop a central bank digital currency.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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