In a significant move, Iran has announced its willingness to accept cryptocurrency as payment for military equipment, including ballistic missiles and warships, as a strategy to circumvent international sanctions. The Ministry of Defence Export Center, known as Mindex, revealed that it is ready to negotiate military contracts that will utilize digital currencies among other payment methods such as Iranian rials or bartering, according to reports from the Financial Times.
Mindex oversees Iran”s defense sales internationally and maintains relationships with approximately 35 countries. The official website of Mindex lists a variety of military products including missiles, rockets, and hovercrafts, although specific pricing details are not provided. This development marks one of the first instances where a nation has openly expressed its intent to accept cryptocurrency for military transactions.
The backdrop of this announcement is the extensive sanctions imposed on Iran by the U.S., U.K., and the European Union, which have severely restricted its access to the global financial system and the U.S. dollar. These sanctions, aimed primarily at curbing Iran”s nuclear missile program and oil exports, have pushed the nation to rely increasingly on barter trade and, notably, on Bitcoin.
In September, the U.S. Treasury Department took action against two Iranian individuals, accusing them of facilitating transactions exceeding $100 million in Bitcoin and other digital assets. These transactions were reportedly aimed at supporting Iran”s oil sales from 2023 to 2025 and directing funds to the Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL). U.S. authorities view these activities as part of a larger financial “shadow network” operated by Iran.
This latest development in Iran”s military commerce underscores a broader trend where nations under sanctions are increasingly turning to cryptocurrencies as a means of facilitating transactions that would typically be restricted by traditional banking systems. As global geopolitical dynamics continue to shift, the role of cryptocurrencies in international trade and defense may become increasingly significant.
