The sanctioned country is reportedly turning to cryptocurrencies to keep trade flowing in the face of increased Western scrutiny
Iran’s Ministry of Defense Export Center, known as Mindex, is prepared to negotiate military contracts for payment in digital currencies, Financial Times has reported, citing promotional documents and and analysis of payment terms. Payments can also be made through barter arrangements or in Iranian rials.
In August, Britain, France, and Germany triggered a UN mechanism to reimpose international sanctions on Iran after diplomatic efforts to revive negotiations over its nuclear program with the US collapsed. Tehran is now under extensive sanctions targeting its nuclear and missile programs, oil sector, and access to international banking, forcing it to rely increasingly on barter trade and digital assets such as bitcoin.
The offer made last year marks one of the first known cases of a nation-state publicly indicating willingness to accept cryptocurrency as payment for weapons exports, the news outlet stated.
Mindex says it has clients in 35 countries and markets a range of weapons including ballistic missiles, drones, warships, and short-range air defense systems. Its multilingual website also lists small arms, rockets, and anti-ship cruise missiles.
The export center operates an online portal and virtual chatbot to guide prospective customers through the purchasing process. Despite extensive sanctions, Mindex says on its website that “there is no problem” in fulfilling contracts.
Iran ranked 18th in the world for major arms exports in 2024, behind Norway and Australia, according to the Stockholm Institute for Peace Research.
US authorities have previously accused Iran of using digital assets to facilitate oil sales and move funds outside the formal banking system.
In September, the US Treasury imposed sanctions on individuals for allegedly operating a “shadow banking” network that used cryptocurrency to process payments on behalf of Iran.
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