Crypto News

Iran and Russia may soon Transact in Cryptocurrencies

Iran and Russia may soon Transact in Cryptocurrencies

Iran and Russia May Soon Transact In Cryptocurrencies

According to RBC, a Russian News Portal, Iran and Russia are considering a new phase of the crypto-based transaction to avoid international sanctions.

Head of Iranian Parliamentary Commission for Economic Affairs, Mohammad Reza Pourebrahimi, acknowledged digital currencies as a full proof evasion of US dollar transactions. He also claimed that dealing in virtual coins can replace the SWIFT interbank payment system. Pourebrahimi stated that they have “engaged the Central Bank of Iran to start developing proposals for the use of cryptocurrency ‘in a meeting with the Chair of the Federation Council Committee on Economic Policy, Dmitry Mezentsev.

Pourebrahimi informed that Iran is set to co-operate with Russia on the matter of digital currencies and he has already talked over with the State Duma’s Committee on Economic Policy. He said, “They [Russia] share our opinion. We said that if we manage to move this work forward, then we will be the first countries that use cryptocurrency in the exchange of goods.”

He further noted that amidst the international sanctions currently placed against both Russia and Iran “interbank relations between our countries should be of great importance.”  On July 5 2018, Tehran will host the meeting of the interbank working group on financial and interbank cooperation.  Pourebrahimi also informed that citizens of Iran have been able to milk $2.5 billion in digital currencies without any access to the international banking system.

In a similar move, Venezuela launched an oil-backed native digital currency called Petro. Experts acknowledged it as an illegal route to enter the international financial markets. Petro has inspired nations like Iran and Turkey to work on their local digital currencies while Russia is set to launch CryptoRuble in mid-2019.

Petro is expected to diminish the monopoly enjoyed by the US dollar in international oil deals. The Venezuelan economy is already under threat due to the excess oil supplied by America through offshore drilling. As of now, the country has asked its clients to use Petro to engage in oil trading.

Earlier this year RACIB, Russian Association of Cryptocurrency and Blockchain, informed that CryptoRuble, a state-owned digital currency will be launched in mid-2019.  The Russian government has not been clear about the launch of a fiat cryptocurrency yet it seems like they have made up their mind now.  Back in the day, the officials from Russian Central Bank were against the acceptance of a virtual coin in country’s financial system.

The details of the new venture are set to be discussed in July this year, but the eventual implementation would take another year. The financial authorities of the country are expected to frame out new regulations over Initial Coin Offerings and crypto mining by the same month.

Digital currencies have had a significant impact on the financial systems of countries around the world. While China and India have banned the trade and mining of virtual coins countries like Russia and Venezuela are backing up the new technology. It would be interesting to see the impact native coins have over the dwindling economies of most of the crypto supporters.

About the author

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Brian Booker

An international financial analyst and writer. He has consulted for the Malaysian government, various MNC’s, and other organisations. He focuses on currencies, commodities, and emerging South East Asian markets.

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