Iran has used cryptocurrencies to purchase $10 million worth of imports, a move that could allow the country to circumvent U.S. sanctions.
The news was first announced by Iran’s Tasnim news agency, but so far little is known about the purchase order, including what cryptocurrency Iran uses or what imports it is buying in bulk.
Iran’s import order may be just the beginning.
Alireza Peyman-Pak, an Iranian trade official, said in a tweet that by the end of September, the adoption of cryptocurrencies and smart contracts will be expanded for foreign trade with target countries.
Iran is also set to launch a cryptocurrency version of its currency, the Iranian Rial, by the end of this month.
The political implications are clear.
The purchase could circumvent tough U.S. sanctions against Iran, Reuters said.
It’s also not the first time an Iranian cryptocurrency move has drawn attention.
Iran accounts for 4.5% of global bitcoin mining activity, according to a 2021 report by blockchain analytics firm Elliptic, thanks to cheap electricity prices in the country, but which has led the government to blame cryptocurrency miners for crashing the power grid and ban cryptocurrency mining altogether.
Unlike El Salvador and the Central African Republic, Iran has not declared any cryptocurrencies as official legal tender, though it could become so with the release of the crypto rial later this month.