Allameh Tabataba’i University Strategic Recommendations for  Administrative Bodies

Allameh Tabataba’i University Strategic Recommendations for Administrative Bodies

Feasibility of Applying Cryptocurrencies in the Country's Domestic and Foreign Financial Transactions

Author
Department of Management of Operations and Information Technology, Allameh Tabataba'i University
Abstract
Cryptocurrencies and blockchain technology have emerged over the past decade as fundamental innovations within the global monetary system, generating simultaneous opportunities and threats for Iran's economy, where policy engagement requires precise understanding, operational planning, and a transparent legal framework. The primary capacities in this domain include the potential to develop cryptocurrency mining and exchange businesses, job creation with relatively low investment, and leveraging the country's comparative advantages in cheap energy and labor; small-scale mining (fewer than 50 devices), for instance, is evaluated as feasible in terms of cost and training, and attractive from a revenue perspective. Conversely, key challenges include security risks, extreme price volatility, production limitations, legal and regulatory gaps, ambiguity in taxation, and concerns regarding money laundering. Furthermore, high energy consumption in networks such as Bitcoin constitutes a strategic issue, and mining profitability is heavily dependent on electricity prices and regulatory mechanisms. From a policy standpoint, prohibitive approaches risk depriving the country of the benefits of this technology; consequently, the three branches of government must collaborate to formulate appropriate bills and regulations, establish consistent official positions, expand public and specialized blockchain education in universities, and establish specialized research and professional institutions.
Keywords