Cryptocurrencies are now making a global invasion with adoption from one country to another. Who amongst the powerful countries will soon follow this new trend? Let’s all wait and see. State-level adoption is definitely one of the biggest developments to ever happen in the crypto world.
After witnessing giant companies adopting cryptocurrency in the past weeks, another breakthrough has happened this week. Iran has adopted Bitcoin to be used as payment exclusively for imports. Bitcoin is the first cryptocurrency launched using the blockchain and the most dominant among all cryptocurrencies.
This is a huge development in Iran’s stand on cryptocurrencies. In a report by IRNA news agency on Aug 4, 2019, the cabinet has ratified a law and released a new bill stating that the government will not recognize any domestic activity which involves cryptos. Also, digital currencies will not be viewed as legal, and that the Central Bank will not guarantee their value. This is following an announcement made by the Central Bank’s deputy governor that trading of Bitcoin in the country is illegal. But more than a year after the ratification of the law, Iran has made a reverse action by welcoming cryptocurrencies.
According to the IRNA news agency, the cabinet has amended an existing law issued on the use of cryptocurrencies in the country. The amended law has redirected digital currencies into the Central Bank of Iran to fund mechanisms for imports.
“The miners are supposed to supply the original cryptocurrency directly and within the authorized limit to the channels introduced by the CBI,” said a report by CBI and the Ministry of Energy.
This was further explained by Presstv, an Iranian state-owned news and documentary network affiliated with the IRIB :
“The legal cap for the amount of cryptocurrency for each miner would be determined by the level of the subsidized energy used for mining and based on instructions published by the Ministry of the Energy.”
Iran’s inflation rate rose to 41.06 percent last year. The sanction imposed by the US which prevented it from using dollars for international trade, including medicines has forced the country to turn to Bitcoin. Despite its volatility, Iran was left with no choice but to seek refuge in cryptocurrencies.
Australian crypto analyst, Alex Saunders shared his opinion on this matter in his recent tweet: I predicted the first sovereign to hold $BTC would be one with nothing to lose. Iran’s central bank will now legally hold all #Bitcoin used for imports/exports allowing them to bypass the USD.No one wants to be 1st. Then no one wants to be last.
After Iran legally adopting Bitcoin, who will be next? In his most recent tweet, Alex Saunders mentioned Mongolia.