Iran plans to continue using cryptocurrencies to arm itself, according to a report in the Financial Times. The assets would be used to purchase ballistic missiles, warships, and other types of weaponry.
Iran relies on cryptocurrencies for its weapons
The Financial Times report states that Iran’s Ministry of Defense expressed interest in cryptocurrencies this week. The country, which is subject to heavy international sanctions, already uses crypto assets to circumvent the limitations imposed on it.
However, the Ministry of Defense would like to go further and use cryptocurrencies to procure ballistic missiles, warships, and other types of “advanced” weapons.
The Iranian Defense Ministry’s Export Center […] says it is ready to negotiate military contracts that allow payments in digital currencies. [This is] one of the first known cases where a nation-state has publicly indicated its willingness to accept cryptocurrencies as payment for the export of strategic military equipment.
Dodging international sanctions
Iran is expanding its evasion tools, which allow it to circumvent international sanctions. Last month, the US announced that it had sanctioned 29 ships in a “ghost fleet” used to smuggle Iranian oil. The country, which has been the target of US strikes on its nuclear facilities, is also believed to have funded its program using cryptocurrencies.
Furthermore, although it is difficult to confirm these figures, Iran is said to have accounted for 4.5% of the computing power used to mine Bitcoin in 2021, according to Reuters. Due to the opacity of transactions, it is not possible to accurately estimate the extent of the cryptocurrency networks used by Iran.
It is interesting to note that countries under heavy economic sanctions, such as Iran, Russia, and Venezuela, are turning to cryptocurrencies. This highlights the decentralized nature of cryptocurrencies, which were designed to operate outside of state control.
