Topic: [2022-08-09] Iran makes first import order using cryptocurrency - page 2. (Read 528 times)

Exactly. More importantly, once there is a critical mass in crypto, people won't have to trade in and out of it, they'll just settle up in crypto.  Then there is much less need for an exchange whether p2p or centralized.  This type of use if it is even real is a first step in having large amounts remain in crypto.  If you buy something from ABC and they immediately trade it for fiat, what's the real point?

The more controls that are put in place the more likely it is to occur.  For example, when Stripe and PayPal banned the Trump campaign in Jan 2021, the obvious answer was to just switch to crypto.  Ditto for other places that are getting hit by Visa such as pornhub's parent company.  Ditto for banks that are denying loans to firearms companies, gun shops or oil companies.  Ditto companies that are being black listed (or grey listed) on ESG grounds.   Jen Psaki said that people who spread “misinformation” “shouldn’t be banned from one platform and not others.”  She wasn't talking about just social media, she was talking about the entire realm of the digital world including online payments etc too. 

The end result of this will be to drive people to places that don't want to or aren't able to censor them and crypto is one place they'll end up because while it is nice to see "free speech alternatives" to some of these things, as long as they are centralized, they are subject to legal pressure.

(No comment on whether this is a good thing or not with regard to it being Iran of course).

This is something I don't understand. They can very well use any kind of IOUs in the same way, I don't see why CryptoRial is seen as a good choice. I mean, Iran can declare in any second they no longer recognize CryptoRial and other states get scammed. (I know, it's not very likely, but still... Bitcoin is safer option)


With most of Russian banks being locked out of SWIFT, of course they are scared they'll face the same. The "stolen" part may be more a story for the public.
Even more, by avoiding SWIFT they can also (re)sell Russian oil they may get at discounted price.


Actually with crypto it won't be that easy, since one can buy/sell crypto P2P, avoiding the centralized platforms that enforce US rules.

The main goal is to abandon US dollar as trade/reserve currency rather than being to circumvent sanctions since there are a million ways of doing that already.

In fact there was a press conference last night with some additional information which I try to translate here.
Basically I'd say the goal is providing a much better alternative to SWIFT with real security considering any money sent through SWIFT can be stolen by SWIFT! For example for the past couple of years about $7 billion of Iran's money is stolen by South Korea through SWIFT and they are refusing to give it back.

"The goal is to replace LC with smart contracts using the blockchain technology (without needing a third party) to handle payments for import/exports and have better guarantees from the other party. Basically replacing SWIFT."

From what I understand there is going to be a domestic centralized exchange where miners could deposit their bitcoins (apparently not limited to miners only). They can either sell it there and receive fiat or CryptoRial or credit for imports through the provided channels.

The target for imports is said to be "places where mining and using cryptocurrencies are common" naming "Russia, India, China and South East Asia".

The article still didn't mention what cryptocurrency was used or whom was the $10 mil trade with.

Whatever if it's about using Bitcoin or the cryptorial, isn't it a useless move if the goal is really to avoid the economic embargo on Iran?

My logic:
The U.S. sanctions apply to companies and financial institutions that want to trade in USD with Iranian companies/banks. Not only USD by the way, but it's also about gold, silver, and of course in Rial.
The only thing the U.S. has to do is to add cryptocurrencies to this list and bingo: blocked again

Who would like to still trade with something in Iran knowing The extraterritoriality of American law

Unfortunately this whole news is based on a very vague tweet and the media went nuts over it

My guess is that this is either about using bitcoin considering the fact that for a couple of years there has been talks about using bitcoin (earned from mining) for imports and there has been rumors about it being used.

Or there is a higher chance that it is Iran's CBDC called CryptoRial which was supposed to start operating this year and a little more than a week ago the Russia’s State Duma showed interest in using it.

Considering that they modified the law a couple of years ago to "only allow legally mined cryptocurrencies for funding import orders" and also the fact that at some point in last year, they had 4.5% of the market share for mining BTCitcoins, I have a strong feeling the order in question was probably made with BTCitcoins.

It appears that they'd probably expand its coverage to CBDCs and smart contracts ^{[not sure if it's feasible, but IIRC, a few years back they had some plans with China and Russia]}.

https://www.reuters.com/business/finance/iran-makes-first-import-order-using-cryptocurrency-tasnim-2022-08-09/

According to Reuters (who is citing another agency), Iran has made this its first official import order using cryptocurrency. It's an order that worth $10M. It doesn't tell it was Bitcoin or not though, and the following part makes it even more confusing:


I'm not even sure whether I should be happy or unhappy about this news, but certainly it's far from unexpected. It's... part of the adoption...