As Iran’s national currency, the rial, suffers from hyperinflation, some in the country are proposing locally mined cryptocurrency might be a way to fund car imports. According to the ArzDigital report, Gholam Hossein Mozaffari, CEO of the Kish Free Zone Organization, said he hopes an agreement will be reached with the central bank to use cryptocurrency produced in Iran to fund imports. The Central Bank of Iran had told the organization that it could not provide the funding needed because of the inflation of the national currency and the current economic conditions. Cryptocurrency-related startup stories around the world have increased.
Iran’s national currency suffers from hyperinflation.
According to reports three weeks ago, Iran’s inflation had reached as high as 30% year on year. Sanctions imposed by the United States and endemic corruption and economic mismanagement are cited as being major factors behind the high levels. Gholam Hossein Mozaffari, CEO of the Kish Free Zone Organization, said that their next suggestion was that they would provide the required currency through the digital currency produced in the free zones, the origin and amount of which are known, and do not put any pressure on the country’s currency.
“Cryptocurrencies are already being mined on Kish.”
According to Mozaffari, cryptocurrencies are already being mined on Kish island. He said that he hopes to soon meet with the head of the central bank to discuss the possibility of using that income to fund the auto imports. The CEO would also call on the private sector to launch a cryptocurrency exchange. Mozaffari said that if the central bank allows this, then it would be possible to import cars with digital currency for these three free zones, and the car problem can be solved. Iran’s government has been moving to permit cryptocurrency mining amid hyperinflation, under certain restrictions, to bring in much-needed foreign capital.