Iran was the first country in the world to officially accept Bitcoin as an international medium of exchange.
The country was urged to take this step because of the new wave of sanctions that arrived earlier this week.
Now the country plans to use only legally mined BTC, which means that miners will have to sell their coins to the CBI.
According to a recent report quoting the Islamic Republic News Agency (IRNA), Iran has just become the first country to use Bitcoin (BTC) as a legal medium of exchange. The country has taken this step due to the recent wave of sanctions imposed by the U.S. Treasury Department.
The U.S. Treasury Department initiated a new wave of sanctions against the country only a few days ago, and Iran has already reacted. According to yesterday’s reports, the country now hopes to use Bitcoin for international settlements.
The Iranian government quickly changed its crypto-money regulations to allow cryptobankers to divert their coins for international trade into the country’s financial mechanism.
While sanctions are undoubtedly the biggest factor in the decision to switch to Bitcoin, Iran took this step also because its fiat currency has suffered greatly from the COVID 19 pandemic.
Iran has strict rules on which coins can be used
While a switch to Bitcoin is an important step for the crypto industry, the new Iranian legislation emphasizes that only those BTC coins that have been legally minted may be used to finance imports from abroad.
In other words: anyone who mines BTC coins in the country is obliged to sell the coins to the Central Bank of Iran (CBI). The report also notes that there is an approved limit below which the new coins must arrive.
There is a legal limit for each miner, which depends on how much electricity he has to consume to operate his mine.
Iran did not always appreciate crypto currencies and their potential. Many may remember that the country only legalized the trade in Bitcoin in August last year. Since then, however, the country has become much more receptive to digital currencies.
The government began to provide energy to the miners to legally promote BTC mining. In January 2020 it issued over 1,000 mining equipment licenses, and just a month ago it offered the country’s miners up to three power plants.