The Iranian government adopted and uses bitcoin for international trade.

08.11.2020

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As the country's economic crisis deepens, the number of cases of Covid-19 increases, the depreciation of the rial currency and sanctions from the US government worsen, Bitcoin is the solution. Iran's Ministry of Health says the number of daily Covid-19 infections has increased four times in less than two months. In addition, the US government is imposing more and more sanctions on Iran while the local fiat currency rial continues to decline dramatically. Steve H. Hanke, a professor of economics at Johns Hopkins University and an expert on hyperinflation, described the situation in Iran as "a classic death spiral." He itemized on Wednesday: From 01/01/2020 the rial weakened by 54.23% against the dollar in the free market and inflation rose from 21.89% to 158.31%. Bitcoin is the solution to Iran's problems. While Iran has long been a proponent of bitcoin regulating the cryptocurrency industry since August 2019, the country made a major move last week to take cryptocurrency adoption to the next level. An IRNA publication reports that the Iranian government has changed cryptocurrency legislation based on a joint CBI and Iranian Ministry of Energy proposal to allow a central bank to use cryptocurrency in order to pay for import goods. It may also help the central bank avoid restrictions imposed by the US government. While the government is still working on the details of how this will be done, the publication said that licensed bitcoin miners in the country will have to sell their coins directly to the central bank. Iran Daily described: The Iranian government has changed its cryptocurrency laws to allow them to be used only to finance imports at a time of increased pressure on the normal use of hard currencies in the country. "By law, legally mined cryptocurrencies in Iran will only be redeemable if used to finance imports from other countries," the news service continued. "Miners are to supply genuine cryptocurrency directly and within the allowed limit to channels introduced by the CBI." In addition, "the legal cryptocurrency quantity cap for each miner would be determined by the level of energy used for mining and based on instructions published by the Ministry of Energy."

 

JacekSalach

08.11.2020 16:51

Accepted.