Prepare for Government and Regulator Freak Out

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Today Iran announced that businesses have the green light to use crypto for imports. Previously we have seen government officials and regulators issue warnings and speak out against crypto due to the idea that Russia, Iran, and North Korea could “break” sanctions by utilizing crypto. Since Bitcoin and Ethereum are independent of central banks/governments these governments could in theory get around the USD and Euro restrictions. When Congress asked its research branch to look into the issue they quickly found a huge barrier to the idea. There is a lack of liquidity for these companies to really pull this off and excel.

For a country like Iran to use this, there is a ton of risk for whoever trades with them this way. Whatever company decides to accept Bitcoin or whatever crypto that is chosen takes a huge risk that the token will not fall under the value of the trade along with being able to convert this Bitcoin into fiat to pay for the production of the goods. Some of this like the value falling could be addressed by Iran dramatically overpaying for the goods but that would then be an awful move on the Iranian government’s part.

Iran would also have to bank on its main trading partners allowing this as well. With China, the UAE, India, and Turkey being its largest trading partners issues with China and India quickly arise. Turkey is on an extremely unstable economic ground as a country so it would not be in their government’s best bet. This leaves the UAE which while trying to become the Middle East capital of crypto would have to take on this risk with a rival as seen in the Yemen war. Looking at these options as a whole it does not seem that there is any ideal trading partner that would one be willing to accept this risk and two be in a position economically to ride out the huge waves in crypto.

submitted by /u/Status_Floor1746
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