Pay Me In Bitcoin, They Said...
About a year ago I had a bunch of posts on Leofinance where I discussed what I was at that time calling "the fight on Bitcoin". That narrative was referring to the mass adoption of cryptocurrencies at the state level and how this would be inevitable in the years to come.
We are now witnessing Iran actually fulfilling that prophecy. And no, it is not fighting any country over Bitcoin, but instead, it has just completed its first foreign trade order for $10 million worth of import goods using cryptocurrency.
Impressive. I personally don't know much about the country, but according to the news report talking about the crypto integration that Iran is currently involved in for international affairs, it seems that the country is also contributing to Bitcoin mining with 5% of the global hashing power.
“By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.”
“We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptos in their international deals.”
“Iranians’ daily crypto transactions are estimated between 30 and 50 trillion rials ($181 million), and More than 88% of the deals are conducted via local exchange platforms.” source
The best use case that I see for cryptocurrencies, or better said the best use case for now is to have them replace the current financial system and its flawed and dated fiat currencies. I am aware that what we call cryptocurrency doesn't actually end to being just some new form of money or a "store of security", as @edicted has called Bitcoin recently, but Iran's move is a good step forward in crypto mass adoption,.
As far as I know, Iran is facing some sort of American sanctions and the country is also "in deep shit" when it comes to inflation, thus settling foreign affairs through smart contracts by using cryptocurrencies does make a lot of sense. I know, crypto is volatile, but at least it's a safer bet than fiat is and it also has the pedigree to circumvent absurd sanctions that only the US would impose on other countries.
Despite being in a bear market in crypto, the train of evolution and disruption doesn't stop even during such times. My take is that many others will follow Iran's example, Russia being a valid candidate for that, and before you know it we will have a strong crypto penetration through the current financial system web.
Quite a few were disappointed when Tesla threw the announcement that it will no longer accept Bitcoin as a selling currency for its brand new EVs. Well, we don't need you Elon, we have countries doing basically what you were doing just a bit over a year ago. What do you think?
Thanks for your attention, Adrian
Posted Using LeoFinance Beta
