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Iran Makes First Import Order Using Cryptocurrency

Representations of cryptocurrencies in this illustration taken, January 24, 2022. (Reuters)
Representations of cryptocurrencies in this illustration taken, January 24, 2022. (Reuters)
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Iran Makes First Import Order Using Cryptocurrency

Representations of cryptocurrencies in this illustration taken, January 24, 2022. (Reuters)
Representations of cryptocurrencies in this illustration taken, January 24, 2022. (Reuters)

Iran made its first official import order using cryptocurrency this week, the semi-official Tasnim agency reported on Tuesday, a move that could enable the country to circumvent US sanctions that have crippled the economy.

The order, worth $10 million, was a first step towards allowing the country to trade through digital assets that bypass the dollar-dominated global financial system and to trade with other countries similarly limited by US sanctions, such as Russia. The agency didn't specify which cryptocurrency was used in the transaction.

"By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries," an official from the Ministry of Industry, Mine and Trade said on Twitter.

The United States imposes an almost total economic embargo on Iran, including a ban on all imports including those from the country's oil, banking and shipping sectors.

Last year, a study found that 4.5% of all bitcoin mining was taking place in Iran, partly as a result of the country's cheap electricity. The mining of cryptocurrency could help Iran earn hundreds of millions of dollars that can be used to buy imports and lessen the impact of sanctions.

Cryptocurrencies such as bitcoin are highly volatile and have not found a widespread footing for payments.

The European Union on Monday said it put forward a "final" text to revive the 2015 Iran nuclear deal as four days of indirect talks between US and Iranian officials wrapped up in Vienna.

Under the 2015 agreement, Iran curbed its nuclear program in return for relief from US, EU and UN sanctions. But former US President Donald Trump reneged on the nuclear deal in 2018 and restored harsh US sanctions, prompting Tehran to start violating the agreement's nuclear limits about a year later.

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Taiwanese Rally For, Against the Recall of Opposition Lawmakers Seen as Close to China

A Taiwan flag can be seen at Liberty Square in Taipei, Taiwan, July 28, 2022. REUTERS/Ann Wang/File Photo
A Taiwan flag can be seen at Liberty Square in Taipei, Taiwan, July 28, 2022. REUTERS/Ann Wang/File Photo
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Taiwanese Rally For, Against the Recall of Opposition Lawmakers Seen as Close to China

A Taiwan flag can be seen at Liberty Square in Taipei, Taiwan, July 28, 2022. REUTERS/Ann Wang/File Photo
A Taiwan flag can be seen at Liberty Square in Taipei, Taiwan, July 28, 2022. REUTERS/Ann Wang/File Photo

Threats from China and anger over legislative deadlock are dominating Taiwan's political discourse as residents rally for and against a campaign to recall two dozen opposition Nationalist Party lawmakers in polling to be held on Saturday.

Thousands of supporters of the independence-leaning ruling Democratic Progressive Party turned out in the heart of the capital Taipei on Thursday to hear from civil society activists, writers, musicians and others who support the recalls, which could potentially give the party, also known as the DPP, a majority in the legislature.

The DPP won last year’s presidential election, but came up short in the legislature, The AP news reported.

Since then, the China-friendly Nationalists, also known as the KMT, and their allies have sought to hobble the power of the executive and blocked key legislation, especially the defense budget.

That has been seen as undermining both Taiwan’s hard-won democracy and its ability to deter China’s threat to invade the island it considers its own territory. Those concerns prompted activists to campaign for recall votes in the districts where Nationalists were seen as most vulnerable, and they succeeded in 24 districts where votes are scheduled this weekend.

A recall measures must win 40% of the constituents in a district to succeed, after which a special election will be held to fill the seat, in which all parties can compete.

The KMT and the smaller Taiwan People’s Party together hold a majority in the parliament with 62 seats, while the ruling DPP holds 51 seats.

The KMT on Thursday sent some of its best known politicians, including the mayor of Taipei, the speaker of the legislature and the party chairman, out to urge voters to oppose the recall. It also planned a rally in Taipei on Friday. The KMT calls the measure a power grab by the DPP and a threat to multi-party democracy.

Perhaps more than any issue, China has loomed over the campaign, with both its officials and state media dismissing the recall effort as a further futile attempt to preclude what they call the inevitability of Beijing's annexation of Taiwan, either by military or peaceful means.

On Taiwan, it has brought out differences between Taiwanese who favor pursuing the current path and those who seek accommodation with Beijing. China-friendly politicians have been accused of selling out Taiwan for accepting trips to the mainland and meetings with Chinese politicians, while they defend themselves as keeping open lines of communication in light of Beijing's refusal to interact with the DPP.

The recall campaign — Taiwan's first — was prompted by anti-KMT groups alarmed by the party's closeness with China, corruption and the KMT's refusal to work with President Lai Ching-te's administration.

They first needed to gather signatures from 10% of voters in each district, targeting legislators seen as particularly vulnerable or controversial and under China's influence. Each campaign seeking to unseat a single legislator required a huge organizational effort, limiting the number of KMT lawmakers targeted.

The KMT is primed to contest any special elections that must be called within six months, raising the possibility that they could win back the seats, and the DPP, although enlivened by the campaign, could still remain in the minority.