This country will now buy state-mined Bitcoin to fund imports

The Irani government will now allow imports to be paid for using Bitcoin, as per a recent report in local publication ISNA. The move is the first-of-its-kind and marks an important milestone in Bitcoin's history.

Iran has moderately friendly towards the Bitcoin market thus far.

Earlier this year, the state allowed for the legal setup of Bitcoin miners in the country and provisioned the use of excess power produced by power plants to be used up to mine the cryptocurrency.

The country prohibited trading at the same time.

Per the report, the country's Ministry of Energy and Central Bank of Iran will now buy all Bitcoin mined by the country's registered.

They also cannot use any third-party services to sell their Bitcoin.

It will then use the accumulated Bitcoin to fund all imports, i.e. pay for the goods purchased by the country.

These have together led to the country been politically and economically isolated from a majority of Western powers, although China continues to do some business with the region.

Bitcoin's emerged as a savior to Iran's woes.

In turn, brings with it a whole new set of problems - who accepts Iran's Bitcoin? What rates will they be purchased/sold at? Who custodies the Bitcoin? And finally: What if the US imposes sanctions on the countries conducting business using Bitcoin?