Crypto is a topic of interest in Iran. An agreement has been made between the Ministry of Trade and the Central Bank of Iran allowing for cryptocurrencies to be utilized in international trade.
A report states that this recent agreement allows for payments to be made in crypto by both importers and exporters. This new payment mechanism will be seen as an opportunity to boost the Iranian economy by increasing international deals.
Iran will allow international payments in #crypto— Trustee Wallet (@Trustee_Wallet) January 12, 2022
Iran's Ministry of Industry and CB are creating a mechanism to allow local merchants to make payments with international partners in crypto. pic.twitter.com/CHqDNAGgs2
As crypto mechanisms and transactions gain traction, economically unstable countries like Iran see this as an opportunity to gain financial liberation. Financial institutions are adopting these centralized exchanges due to the large volume of transactions.
Because of the mandatory protocols, Know-Your-Customer (KYC) and Anti-Money Laundering (AML), the data for these transactions will be readily available.
The preferred form of settlement for most international trade is the U.S. dollar; however, due to imposed U.S. sanctions, Iran has restricted the use of the U.S. dollar.
Because of the tension between Iran and the United States, Iran transitioned to the Euro in 2018. In an attempt to navigate the dominance of the U.S. dollar in international trade, countries have seen crypto as a viable option.
The desire for safe, quick, and cost efficient modes of settlement is resulting in a higher demand for payment processing companies to ensure crypto friendly platforms for its users. These companies include MasterCard, PayPal, and Visa.