Victor Ugochukwu · Oct 27, 2020 . 6min read
Amidst Hyperinflation Iran Plans to Finance Car Imports via Cryptocurrency Mining
While Iran's national currency faces brunt of hyperinflation, Gholam Hossein Mozaffari says crypto mining funds can be used for car imports.
By Komal Joshi · Sep 16, 2020 . 6min read
Iran has not always displayed a progressive attitude towards cryptocurrency. The nation had earlier cracked down on illegal crypto mining operations. Nevertheless, Iran has been attempting to benefit from offering legal cryptocurrency mining. A report from media outlet ArzDigital asserts that Hossein Mozaffari, CEO of the Kish Free Zone Organization, anticipates that a formal agreement will be communicated with the nation’s central bank to acknowledge the funding of imports utilizing cryptocurrency. This proposal comes when Iran’s national currency Rial suffers hyperinflation.
As per the recent reports, the nation is now aiming to fund car imports with locally mined cryptocurrency. The announcement comes as its national currency Iranian Rial proceeds to suffer from hyperinflation. Gholam Hossein Mozaffari said that the new proposal came right after the Central bank had informed the organization that it could not provide the funding required for imports. He elucidates that the Central bank denied the funding due to currency inflation and Iran’s current economic conditions.
Iran’s National Currency Rial Encounters Hyperinflation
For the uninitiated, the nation had been troubled by inflation for years. However, just three weeks before this, the inflation had hit highs of approximately 25% a year. Gholam Hossein Mozaffari states that their next suggestion was to provide the required currency via the digital currency produced in the free zones. He further says that it should not put any pressure on the country’s currency.
Gholam Hossein Mozaffari said that Kish Island mines cryptocurrencies. Moreover, he stated that he would soon meet with the central bank’s head to consider the feasibility of utilizing that income to finance the auto imports. The CEO would also summon the private sector to start a cryptocurrency exchange. Mozaffari further elaborates that if the central bank approves this, it would be reasonable to import cars with digital currency for these three free zones. Thus, car funding problem can be solved.
Conclusively, Iran has transferred its attitude towards digital assets. This year, Iran’s President Hassan Rouhani recognized the underlying technology crypto as a valuable tool. He stated that crypto could assist in combating the domination of the United States dollar and the American financial regime.
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Victor Ugochukwu · Oct 26, 2020 . 5min read