Iranian Banks Allowed to Use Bitcoin Generated by Sanctioned Miners to Pay for Imports

Iranian Banks Allowed to Use Bitcoin Generated by Sanctioned Miners to Pay for Imports

Iran’s central bank is now allowing its financial institutions, including banks, to use cryptocurrency, which is derived from the sanctioned miners, to pay for its imports, according to a report by the Financial Tribune.

The Central Bank of Iran (CBI) has already notified the banks and money changers of the amended regulatory framework for crypto payments. The local crypto mining industry, according to some, can generate as much as $2 million a day in revenue.

Iran, which is hit hard by the international sanctions, would now be able to pay for goods and services from other countries and circumvent the US economic sanctions.

It was back in October 2020 when the central bank first amended its regulations and allowed Bitcoin and other cryptos to be mined using subsidized energy. At the time, the bank stipulated that all miners’ coins had to be sold to the bank directly and only digital assets to be used for import funding.

Now, the central bank is extending the use of legal use of cryptos to other groups and institutions as well.

“It said lenders and money changers have been notified about the regulatory framework for crypto payment,” per the Tribune. “No further details were announced, the CBI website reported.”

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Author: AnTy

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