Once The Currency For Drug Dealers And Smugglers, Bitcoin Is Now Used By Iran At a State Level For Value Exchange
Just about one year has passed since Iran legalized Bitcoin mining withing its borders, and on Saturday they stepped up their crypto mass adoption. Their initiative was obviously forced by the US sanctions that they have to deal with, and considering their current 34% inflation, Bitcoin's volatility is definitely worth dealing with.
What are they actually going to use Bitcoin for?
Imports obviously, as this is the sector where they got hit hard by the US, being absolutely impossible for Iran to use dollars for international trade. Having their hands tied against the damn dollar, which by the way can be printed almost at the same pace as toilet paper is, the Iranian government turned towards using Bitcoin as a form of payment and wealth transfer/store.
"The change means legally mined cryptocurrency in Iran can only be exchanged if used to fund imports from other nations. Miners will supply the cryptocurrency directly to the CBI within an authorized limit, per IRNA's report. This would be based on how much subsidized energy a miner uses, as well as instructions to be published by the Ministry of Energy." source
Central Bank of Iran (CBI) has initiated the move towards the country's cabinet in order "to allow cryptocurrency to be used for import funding". Move that makes Iran the first country to actually use Bitcoin as a form of payment at a state level. Situation that underlines BTC's status quo, once known as the currency for drug dealers, smugglers and money launderers, it is now a legally accepted in Iran, form of payment and store of value.
Whether it was meticulously planned or not, for BTC to become a global accepted form or payment and store of value, it is crystal clear through real life examples that it will gradually turn as such. My take is that other inflation affected countries will follow suit of Iran and sooner than latter the king of crytos will finally have a use case.
Tons of regulations will have to be wrapped around Bitcoin though until this scenario will be applicable world wide, but the direction is clear and it seems that no one can do anything about it. The world's economy and financial tough situations in different countries are finally pushing Bitcoin to what Satoshi Nakamoto designed it to be in the first place.
Thanks for attention, Adrian
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