Iran made its first official import order using cryptocurrency this week, the semi-official Tasnim News Agency reported on Tuesday, a move that could enable the Islamic Republic to evade sanctions imposed by the United States.
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The $10 million order was a first step towards enabling the Islamic Republic to conduct business with countries similarly constrained by U.S. sanctions, such as Russia, and through digital assets that do not rely on the dollar. The type of digital currency used was not mentioned.
"By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries," an official from the Industry, Mine and Trade Ministry said on Twitter.
The US imposed an almost complete economic embargo on Iran, including a ban on all imports including those from the country's oil, banking and shipping sectors. Tehran is one of the largest economies yet to embrace cryptocurrency technology, created in 2008 as a payments tool aimed at preventing governmental control over finance and economies.
A study published last year discovered that 4.5% of all bitcoin mining occurred in Iran, partly due to the country's cheap electricity. As a result, hundreds of millions of dollars could be made by Iran through cryptocurrency mining, which could be used to pay for imports and lessen the effects of sanctions.
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