Iran Is Becoming the First Country Ever to Use Bitcoin as a Medium of Exchange
Jack Choros
Content Marketing
The Islamic Republic News Agency and media publication Iran Mail are reporting that the Iranian government is amending its legislation so that cryptocurrency miners can legally redirect finances to Iran’s central banking system using Bitcoin as the country continues to struggle economically as a result of the coronavirus pandemic and new sanctions imposed on the country by the United States.
Iran Wants to Keep Mining Profits in the Country
The U.S. Dollar has long been the default international currency used for labelling the value of commodities like oil and gold. Many experts now believe that it’s all going to change as the United States continues to struggle with a rising number of coronavirus cases and more economic stimulus being required in order to take care of American businesses.
While Iran’s interest in making this move relates more to sanctions and political tensions than it does to a changing of the guard for the world’s default currency, the truth is that this move is addressing the latter evolution indirectly. That’s part of the reason why cryptocurrency miners in the country will be obligated to sell their bitcoins back to the Iranian government. This allows for the country to pay for imported goods without having to deal with the United States directly but also earns citizens a profit and stimulates Iran’s economy.
Is This Good News or Bad News for Bitcoin?
As much as decentralized technologies and cryptocurrencies are meant to be both by and for everyone, whether or not this is good news or bad news from a political perspective depends on your point of view. That said, it’s hard to argue that this news is anything less than good for the long-term future of Bitcoin.
Yes, the overwhelming majority of people who didn’t understand Bitcoin 10 years ago positioned it as something only criminals use. But it’s also true that today, that narrative is drastically different. The whole world seems to be investing in Bitcoin and other cryptocurrencies as a hedge against inflation.
The move by Iran to use Bitcoin not only as a store of value but as an actual medium of exchange proves that the latter use case isn’t necessarily dying off completely. Both countries, businesses and individuals in need of a way out of dire circumstances will look to cryptocurrencies when they realize it’s the best choice for their own future.
That’s why there’s no better time than right now to start thinking about investing in Bitcoin. When you’re ready to do so, sign up for a free account with here to get started.
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Written by: Jack Choros
Writer, content marketing at Netcoins.