Iran and Russia Talk Crypto Cooperation, Unveil Tool Streamlining Trade in National Currencies

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Experts and business representatives from Iran and Russia have discussed the potential uses of cryptocurrencies and blockchain. The two countries are also collaborating on implementing new financial instruments facilitating bilateral trade in their national fiats.

Financial Expo Brings Together Crypto Experts From Russia and Iran

Business leaders and industry professionals from Iran and Russia have discussed the potential applications as well as the pitfalls of employing crypto assets and blockchain technologies. They met during the 15th International Financial Industry Exhibition (Finex) in Tehran, local media reported.

The discussion brought together speakers from the crypto and fintech sectors of both countries and government officials, including Mustafa Amiri, secretary of the Iran Fintech Association and the CEO of the Iran Blockchain Association, Abbas Ashtiani, according to the Iranian news portal Way2pay.

Alexander Brazhnikov, executive director of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), and Hossein Khosropour, who heads Innovation and Investment Support at the Iranian Ministry of Information and Communications Technology, also took part in the meeting.

The financial forum, which started on Tuesday at the Tehran Permanent International Fairgrounds, also became the platform for a major announcement concerning trade between the two countries and the management of monetary transactions between economic stakeholders.

New Financial Tool to Facilitate Payments in National Currencies

At an event held by Iran’s Bank Pasargad and Russia’s largest bank, Sberbank, a new financial tool was unveiled – a banking guarantee letter. Used alongside another tool, the domestic letter of credit, this instrument can help streamline trade in the currencies of the two nations, the ruble and the rial.

“These tools have the potential to redefine bilateral trade using national currencies. It’s a significant step forward in the cooperation between Iran and Russia,” Seyed Ahmad Reza Alaei, chief executive of the Iran International Exhibitions Company, was quoted as saying.

The Islamic Republic of Iran and the Russian Federation, both facing international sanctions, have been exploring ways to circumvent financial restrictions. Payments in national currencies between them already exceed 60% of trade transactions.

While Russian authorities are still considering whether to legalize crypto payments in cross-border settlements, Iran already placed its first official import order with cryptocurrency in August, last year. And in May of this year, Iran’s Trade Promotion Organization announced the establishment of a platform allowing businesses to pay with crypto abroad.

Do you think Iran and Russia will start using cryptocurrencies in bilateral trade? Tell us in the comments section below.