Iran and Russia are Adjourning Their Initiative on Transnational Payments of Digital Assets

Lena Smith
Lena Smith Economy
2 Min Read

The governments of the two nations stated they are investigating the usage of cryptocurrency assets in cross-border transactions but would wait until the legal framework is ready before taking any immediate action. Russia and Iran are attempting to avoid international restrictions that ban their enterprises from doing business with outside partners by de-dollarizing their commercial agreements. Regulators in Iran and Russia are also concerned about the possibility of utilizing cryptocurrency as a payment method for international transactions.

Iran and Russia were Strictly Against such an Incentive a Year Before

Reza Bagheri Asl, the deputy minister of communications, declared last year that the Islamic Republic of Iran‘s government will never accept any private digital currencies as a form of payment. According to the official, using any currency other than the national one goes beyond national sovereignty and is against both currency law and banking regulation. 

For its part, the Bank of Russia, represented by Deputy Chairman Olga Skorobogatova, stated that without testing in a “secure sandbox,” the organization cannot sanction the use of digital assets for international settlements.

iran and russia were strictly against such an incentive a year before

The Tides are Turning for the Cryptocurrency Market

However, officials from the two nations said at the beginning of the year that they were looking into the prospect of developing a stablecoin for the Persian Gulf that would replace the dollar, the rouble, and the rial in settlements for international commerce. 

The Persian stablecoin was intended to be backed by gold and used as a medium of exchange for international commerce. The Lotus Special Economic Zone in the Astrakhan Region and the Anzeli Free Economic Zone in Iran are the intended locations for the stablecoin’s actual use.

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I’m a freelance writer and journalist from Toronto, covering real estate, mortgage and personal finance for publications like Forbes, Money, Business Insider, Fortune, US News & World Report, The Motley Fool, CBS News, Hearst newspapers, The Balance, HousingWire, Money Under 30, Bankrate, Builder Magazine, Multifamily Executive, The Simple Dollar, and more.
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