Moscow And Tehran To Cooperate In Building Crypto-Economy In Iran

Moscow And Tehran To Cooperate In Building Crypto-Economy In Iran

Russian experts are expected to work closely with their Iranian counterparts in the development of Iran’s Crypto-economy. The agreement between the two parties was reached during an international conference in Yerevan, Armenia. The relationship between the two countries and the U.S. has deteriorated significantly recently and has seen Washington slap both countries with economic sanctions.

Russian And Iranian Crypto Associations To Work Together

Iran’s journey towards developing a Crypto-economy has received a boost after Russia said that it will provide support in this project. Iran Blockchain Labs (IBL) and Russian Association of Cryptoindustry and Blockchain (RACIB) entered into an agreement to work together during Chain Point 18 conference in Yerevan, Armenia. The international conference took place between November 14 and 15.

The main role of IBL is to guide the Islamic Republic in the implementation of digital technologies. The Central Bank of Iran played a major role in the creation of this innovation hub that was created by the Sharif University of Technology. The signatories of this agreement included RCIB’s Yuri Pripachkin, IBL CEO Mohammad Davatgar, and the president of “Nooor” Vigen Arushanyan. Nooor is an Armenian blockchain association and is also involved in this project.

Russian And Iranian Crypto Associations To Work Together

Iran To Benefit From The Russians Expertise

The Russian Crypto sector can be considered to more developed than Iran’s. RACIB’s President, Yuri Pripachkin said that Tehran now has the opportunity to benefit from the Russian blockchain developers’ expertise. By working together, the two countries will try to establish the best way the technology could be used to help the country out of its current economic problems.

Iran is also struggling with the legalization and regulation of its Cryptocurrency sector. Russian legal experts are expected to play a significant role in helping the country create a legal framework to regulate the sector. Many countries are struggling to find a way to allow blockchain and Cryptocurrency to flourish while at the same time protecting the interests of the investors.

The situation in Iran has worsened after the oil-rich country was cut-off from Swift, making it hard for the country to access the international market. The Russian official said that Cryptocurrencies could help the country to circumvent the economic sanctions imposed by the U.S. RBC news outlet quoted the official saying it is important to exploit this potential to help Iran to overcome the economic challenges it is facing.

Iran Desperate To Circumvent US Sanctions

Currently, Iranian banks have no way to communicate or transmit funds to other countries after the country was denied access to Swift. Without this international system, the country, which is a major exporter has limited options when it comes conducting international business. The recent move by President Trump to pull the U.S. out of the Iranian nuclear deal is the one that has caused all these challenges.

In response, Iranian authorities have moved fast to legalize Cryptocurrency and related activities which it had previously banned. A few months ago, the country began to recognize Cryptocurrency as an economic activity and even allowed the importation of mining equipment. The country is optimistic that the use of virtual currencies will help it to overcome the sanctions.

November 15, 2018

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Samantha Mitchell

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