Iran Sets Up Platform to Facilitate Crypto Payments for Imports

Authorities in Iran are taking steps to make crypto payments easier for companies importing goods in the sanctioned country. A dedicated platform has been established to allow local businesses to transfer cryptocurrency for the purpose of cross-border settlements.

Iran to Use Cryptocurrencies for Imports, Trade Organization Chief Vows

Iranian companies will be able pay for imports with cryptocurrencies, the country’s Trade Promotion Organization (TPO) has assured, according to local media.

Alireza Peymanpak, head of the government body, said that the Central Bank of Iran (CBI) has issued a permission for using cryptos in settlements for imported goods.

“The final decision will be taken by the Economy Ministry,” Peymanpak added, quoted by the official Economy and Bank of Iran News Network (Ibena) on Sunday.

Peymanpak’s statements come several months after he announced that Iran had placed its first official import order in cryptocurrency. In August 2022, the government official revealed the deal was for $10 million worth of goods.

“By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries,” he tweeted at the time.

Peymanpak now revealed that a specialized platform has been created to connect local companies that want to pay foreign suppliers with digital coins. He elaborated:

Businesses can use the platform to transfer cryptocurrency to settle import bills.

A platform like this was necessary to facilitate money transfers using cryptocurrency. It is linked to Iran’s Comprehensive Trade System and the CBI’s Currency Allocation Platform, the executive detailed.

TPO, the organization Peymanpak leads, is affiliated with Iran’s Ministry of Commerce and is responsible for promoting the non-oil exports of the Islamic Republic.

Crypto may be subject to certain restrictions in trading with countries such as Iraq, Afghanistan and Pakistan, the Financial Tribune noted in a report. However, the digital currencies can help Iran in export destinations where they are used such as China, India and Russia, the English-language daily noted.

Like Iran, Russia has been the target of Western penalties, mostly over its involvement in the conflict in neighboring Ukraine, with multiple rounds of stiffening sanctions imposed since it launched a full-scale invasion last year.

Policymakers in Moscow have been discussing the limited legalization of cryptocurrencies in order to allow Russian companies to use them in international settlements with partners abroad, in order to circumvent mounting restrictions on traditional financial transactions.

Do you think Iranian companies will be actively using cryptocurrencies to pay for imports? Tell us in the comments section below.