Sanctioned Iran Turns to Crypto for Cross-Border Trade

The Iranian economy is facing significant challenges due to US sanctions, which have strained cross-border trade. In response, the country's central bank has eased some foreign-exchange controls, allowing traders to use cryptocurrencies like Tether (USDT) and Bitcoin for settlements through local exchanges.

This change gives exporters and importers more flexibility when dealing with Iran, a nation that is largely cut off from the global financial system. Data from TRM Labs shows that nearly $10 billion worth of crypto moved through Iran in 2022, highlighting the growing role of virtual assets in the country's economy.

Iranian businesses can now leverage USDT and Bitcoin for cross-border settlements, with USDT being the most commonly used asset. One executive close to the regime noted that receiving cryptocurrencies for exports is becoming the new norm, as the central bank does not focus on how funds are transferred.