Developments in Iran:
The Central Bank of Iran has declared that licensed banks and moneychangers in the country can use cryptocurrency that has been mined by officially sanctioned miners to pay for imports, according to a report from the Financial Tribune.
– “Iran Authorizes Use Of Officially Mined Cryptocurrency For Import Payments“
Iran is creating forex (a scarce resource) out of energy (an abundant one).
Oil exporting countries usually have no problems with forex – they can choose to get paid in dollars or euros. But Iran has diminishing leverage geopolitically. Large importers like India and China now pay for Iran’s oil imports in their own currencies (“India to pay in rupees for Iranian oil” and “China buying oil from Iran with yuan“) [1]
So Iran can’t manufacture dollars or euro, but it can manufacture bitcoin and other crypto. As long as exporters from other countries accept it, this is a sustainable way for it to participate in global trade.
I am just surprised it took so long. And I wonder how long before the US moves to plug this gap too.
[1] If I remember correctly this was also a condition the US imposed in 2018 on other countries dealing with Iran to be exempt from its sanctions, although that window was temporary.