Iran has allowed exporters to receive payments in Bitcoin and USDT

Iran’s central bank has allowed bitcoin and USDT stablecoins to be received as payment for export shipments, the Financial Times reported. Previously, Iranian businesses were required to convert all foreign-currency revenue through a state platform at the official exchange rate, which was often significantly below the market rate. Exchanging cryptocurrency through the state platform was impossible, and payments in BTC and USDT were classified as evasion of currency controls, punishable by criminal penalties.

Easing of Currency Controls

The new rules allow exporters to manage their revenue freely and directly finance imports, bypassing the official currency exchange system. The Iran Association of Digital Transformation confirmed to the Financial Times that the central bank had effectively stopped insisting on strict compliance with the previous currency regulations and had eased oversight of crypto exchanges.

Accumulated Revenues and Budget Problems

According to the newspaper’s sources, Iranian companies have accumulated more than $100 billion in undeclared revenue that they did not want to exchange at an unfavorable rate. As a result, Royalties paid into the state budget fell. This is especially on Fire for state-owned oil and gas companies, which are among the largest debtors to the state treasury. The authorities expect the easing measures to make converting revenue more profitable for businesses.

Economic Context and Sanctions

Iran has found itself in a situation where not a single barrel of oil can be exported because of the US blockade of the Strait of Hormuz and difficulties with settlements. According to an IMF forecast, Iran’s GDP could decline by 5.4% this year, the worst result in the past 40 years. Although Iran has long lived under international sanctions, the country is now in a more vulnerable position because of its loss of access to foreign currency and imported goods.

In mid-July, Tether froze more than 130 million USDT in wallets linked to Iran’s central bank. Earlier, in April, at the request of US authorities, Tether blocked another 344 million USDT also linked to Iran. US Treasury Secretary Scott Bessent said that US authorities had seized nearly $500 million in Iranian crypto Assets.

FAQ

Which cryptocurrencies are now permitted for Iranian export payments?

Iran’s central bank has allowed bitcoin and USDT stablecoins to be received as payment for export shipments.

Why did Iran ease controls on cryptocurrency payments?

The authorities expect the easing measures to make converting revenue more profitable for businesses, prompting them to contribute more actively to the state budget. Iranian companies have accumulated more than $100 billion in undeclared revenue that they did not want to exchange at an unfavorable rate, resulting in a decline in Royalties paid into the state budget.

What challenges is Iran’s economy facing with exports?

Not a single barrel of oil can be exported because of the US blockade of the Strait of Hormuz and difficulties with settlements, which has led to falling budget revenue and a projected 5.4% decline in GDP this year, according to the IMF.