Iran has not always been open and supportive of cryptocurrency. The nation had previously cracked down on illegal crypto mining operations after it faced problems with miners illegally tapping into the national grid and back in 2019.
However, Iran has been trying to profit and benefit from the introduction of legal cryptocurrency mining and per recent reports, the nation is now eyeing the funding of car imports with locally mined cryptocurrency as the nation’s national currency rial continues to suffer from hyperinflation.
A report from media outlet ArzDigital states that Hossein Mozaffari, CEO of the Kish Free Zone Organization, expects that a formal agreement will be reached with the nation’s central bank to allow the funding of imports using cryptocurrency.
The new proposal comes right after the Central bank had informed the organization that it could not provide the funding requires for imports as a result of the currency inflation and the current economic conditions of Iran, Mozaffari said.
The nation had been plagued by inflation for years, and just three weeks prior to this, the inflation had hit highs of more than 25% a year.
Hence Mozaffari adds:
“Our next suggestion was that we would provide the required currency through the digital currency produced in the free zones, the origin and amount of which are known, and do not put any pressure on the country’s currency.”
According to the CEO, Kish islands is home to a thriving crypto mining industry considering the fact that is one of the free trade zones of Iran. Hence Mozaffari plans to use this income from crypto mining to fund automobile imports and is set to meet with the head of the central bank to discuss this.
Furthermore, he said that he would also urge the pirate sector to launch a cryptocurrency exchange.
“If the central bank allows this, it [would be] possible to import cars with digital currency for these three free zones, and the car problem can be solved,” he concluded.
Developing Cryptocurrency mining
Meanwhile, Iran continues to develop its crypto mining economy amidst the problems of hyperinflation, to bring in foreign capital. However, there are certain restrictions and the nation continues to crack down on illegal mining operations.
As previously reported The Daily Chain, the nation allowed its power plants to operate as crypto mining centers if they comply with all laid-down tariffs in the country and hold appropriate licenses to operate.
Back in May, the nation’s president Hassan Rouhani called for a new strategy for the emerging crypto mining industry. The move was considered an effort to prosper economically amidst the sanctions placed by the U.S.