The Director of Payment Systems Oversight at the Central Bank described the purchase of foreign-origin currency or cryptocurrencies as a form of currency outflow. This marks the first time that one of the Central Bank officials has categorized the purchase of cryptocurrencies, even from domestic exchanges, as a form of currency outflow.
According to IDEA, In a tweet, Mohammad Reza Mani Yekta, the Director of Payment Systems Oversight at the Central Bank, described purchasing foreign-origin cryptocurrency, even from domestic exchanges, as a form of currency outflow. This marks the first time that a Central Bank official has categorized the purchase of cryptocurrency, even from domestic exchanges, as a form of currency outflow.
As the monetary regulator of the country, the Central Bank oversees cryptocurrency exchanges. Mani Yekta stated that purchasing financial resources held within the country but originating from abroad, including buying cryptocurrency on domestic platforms, constitutes a currency outflow.
While the Director of Payment Systems Oversight at the Central Bank considers the purchase of cryptocurrencies as a form of currency outflow, Ali Babaknia, the head of the Mining Committee of the Blockchain Association, stated that it is possible to establish a system for returning the currency generated from mining activities to the country’s economy. This has been mandated in every one of the four resolutions in this area by both the Central Bank and the Ministry of SAMT If the obligations of entities such as the Ministry of SAMT or the Central Bank are adhered to, the Ministry of Energy and Oil would be required to offer discounts to miners. According to the laws, applicants who bring their currency into the country’s economic cycle will benefit from discounts of up to 35%. Therefore, there is a concern that the influence of the Ministry of Energy and Oil has hindered the establishment of a system for returning currency to the economic cycle by the Central Bank and the Ministry of SAMT.
Furthermore, the problems faced by miners, such as power outages, tariffs, and the retroactive calculation of bills, have practically made it difficult for this industry to operate, even if these issues are resolved. The lack of a central bank platform for exchanging these assets and entering the economic cycle also makes it impossible to meet domestic needs for digital currencies through domestic resources.
Ehsan Khandozi, Minister of Economic Affairs and Finance, officially mentioned the possibility of legal cryptocurrency mining a few days ago. However, Khandozi had stated regarding the transactions of these assets: The manner in which the generated cryptocurrencies are to be exchanged or stored is a matter that will be detailed in the next regulations. For this reason, it is practically impossible to sell assets mined by legal and domestically licensed miners, and this method has not enabled the supply of the country’s digital currency needs.
Economy Online reports the reasons for capital outflow as follows: In theory, several major factors can lead to the outflow of capital from national economies: exchange rate disparities, political and economic instability, deficiencies in overall policies to support investors, financial and capital account deficits, corruption, and significant foreign debt of the country. Except for foreign debt, Iran’s economy possesses all the aforementioned factors, especially political instability and corruption, which can compel economic players to transfer their capital abroad. However, not all forms of money outflow from Iran should be classified as capital flight.
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