Iran Leads the World in Eliminating Physical Cash

TEHRAN (Iran News) Speaking at the National E-Commerce Day ceremony titled “724,” held in Tehran, Mohammad Sadegh Mofatteh, Deputy Minister of Industry, Mine, and Trade for Commerce Affairs, said Iran has made remarkable progress in the fields of technology and e-commerce. “We are witnessing significant growth and advancement in this sector,” Mofatteh said. “Reports indicate double-digit growth rates, exceeding 30 percent in some cases. This shows the strength of our digital infrastructure and the expertise of the country’s talented professionals.”

The deputy minister highlighted that Iran’s young population plays a leading role in the country’s digital and economic development. “Ours is a young nation,” he said. “This demographic advantage provides a great opportunity for innovation and growth in e-commerce. Although we still have a long way to go to reach the ideal point, the youth are at the forefront of driving innovation and opening new opportunities in digital trade.”

Mofatteh emphasized that sustaining and expanding the e-commerce sector requires continuous effort and close coordination between the public and private sectors. “The private sector is currently the main driver of these activities, while regulatory bodies guide the process,” he explained. “We must continue to support and strengthen this collaboration.”

Turning to digital currencies, Mofatteh noted that cryptocurrencies have yet to gain a solid footing in Iran. “There is still a fear rooted in ignorance among senior officials,” he remarked. “However, cryptocurrencies represent one of the most effective ways to bypass sanctions because they cannot easily be disrupted or controlled by external forces.”

He added that if Iran had advanced in cryptocurrency use at the same pace as it has in e-commerce, the country would be in a stronger position to withstand external economic pressures. “Had our progress in crypto matched that of e-commerce, we could have managed current economic challenges more effectively,” he said.

Mofatteh announced the ministry’s readiness to cooperate with experts and innovators in the digital finance field. “We invite specialists, entrepreneurs, and elites in this area to collaborate with us,” he stated, underscoring the ministry’s openness to joint efforts in expanding Iran’s digital economy.

Mofatteh also pointed to Iran’s fragmented economic structure as a major challenge to national development. “One of our key problems is fragmented trade,” he said. “More than 90 percent of drivers in the transportation sector are owner-operators, and the average rice paddy size in the country is only half a hectare. In agriculture and many other sectors, we are dealing with small-scale ownership.”

He added that such fragmentation means most decision-making happens at the individual level, making it harder to implement collective strategies and improve efficiency. “The small-scale ownership system limits coordination,” he noted. “To overcome this, we must empower trade associations to organize and support these fragmented sectors.”

Emphasizing the importance of organized cooperation, Mofatteh said strengthening trade and professional associations within the digital commerce ecosystem could deliver significant economic benefits. “If associations take on management roles, it will bring wide-ranging advantages for the economy, government, and even consumers,” he said.

He further noted that the government is ready to delegate greater authority to these associations if necessary. “The ultimate goal is to simplify processes and enhance the efficiency of economic activities,” he added.

However, Mofatteh also acknowledged that associations active in e-commerce are still underdeveloped. “Their activities are not yet institutionalized, and these organizations have not been properly established,” he said. “While the government issues licenses, the initiative for action must come from the associations themselves. Their participation in e-commerce should become more systematic and effective.”

Mofatteh announced that October 15 (Mehr 24 on the Iranian calendar) has been officially designated as National E-Commerce Day. This year marks the first time the occasion is being celebrated formally. “This day symbolizes the importance of e-commerce in Iran’s economic growth,” he said. “The establishment of National E-Commerce Day was approved and announced several months ago.” “Physical Cash”

Reflecting on recent challenges, the deputy minister referred to the Ministry of Industry, Mine, and Trade’s performance during the recent 12-day “economic war,” a period marked by heightened market instability. He recalled that during that time, former deputy minister Seyed Mohammad Atabak played an active role in ensuring that citizens’ needs were met. “Through coordinated efforts between ministry officials and private-sector managers, we were able to stabilize key areas such as transportation, online services, insurance, and logistics,” Mofatteh explained. “Physical Cash”

He added that the Minister of Industry has since held several meetings with major retail chain executives, private-sector representatives, and the heads of the three national chambers — Commerce, Cooperatives, and Guilds — to ensure market stability and maintain normal operations.

Concluding his remarks, Mofatteh reiterated the government’s commitment to supporting innovation, private-sector leadership, and the development of digital trade. “E-commerce is not merely a trend — it is the foundation of Iran’s economic future,” he said. “By empowering our youth, strengthening associations, and embracing technologies such as cryptocurrencies, we can transform challenges into opportunities and build a resilient, self-reliant economy.” “Physical Cash”