Although, Russia and Iran had banned cryptocurrencies like Bitcoin, and Ethereum, now they are conversing the possibility of the two parties growing their cooperation to embrace the cryptocurrency sector as Moscow and Tehran ponder developing a joint gold-backed stablecoin. Russia and Iran also planning to join hands in using cryptocurrencies to boost their international trade.
According to Brazhnikov, the coin would be gold-back, which would help against unpredictability, observing that it would be usable in Astrakhan, which is a free-trade zone where Russia BEGAN accepts Iranian goods.
Reports about this collaboration came out after the Executive Director of the Russian Association of the Crypto Industry and Blockchain, Alexander Brazhnikov, told Russian media that the Iranian Central Bank was considering the joint creation of a cryptocurrency with Russia as a form of payment for international transactions.
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Zerodha co-founder Nikhil Kamath said in a tweet that,
“Iran and Russia to issue a new stablecoin backed by Gold. Damn, if this picks up could be day 1, event 1 of establishing a new economic order everywhere. No idea why it’s getting no oxygen from the global press…”
Even the discussions were approved by Anton Tkachev, a member of the State Duma and the Committee on Information Policy, Information Technology, and Communications, saying the matter would be measured at the government mental levels after cryptos are entirely regulated in his country, which is predictable to happen in 2023.
Iran’s Industry, Mines, and Trade Ministry in August 2022 agreed on the practice of cryptocurrency for importing goods into the country. The country’s first international import order using crypto was $10 million.
Presently, the Russian Central Bank does not support the practice of cryptocurrencies as a way of payment at home, though it consents to it for international trade.
According to Cointelegraph, potential cryptocurrency would function in an Astrakhan special economic zone (SEZ) where Russia began to accept shipments from Iran
Nevertheless, because of the outbreak of the Ukraine war, the European Union debarred European firms from offering any services to residents of Russia who are dealing in cryptocurrency.
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However, the weaponization of the dollar by the EU’s ally, the United States, against the West, put it in a corner as the rest of the world is looking for other means of development away from those under Washington’s hold.
Both China and Russia are already thinking about promoting their currencies for international payments, including through the use of blockchain technologies, with Moscow kicking off compensation for energy supplies in rubles.
Russia started to build its own countrywide payment system when the US aimed it with sanctions in 2014. Back then, clients of several Russian banks were temporarily incapable to use Visa and Mastercard due to the restrictions. Russia getting sanctioned exhibited that Washington would not stop at anything to achieve its political interests, a main apprehension for China and India, as the latter has been developing its own national payment systems that could serve as an alternative to SWIFT.
Launched in 2017, Mir is a Russian banking system, meaning both “peace” and “world” in the language. With the West’s current isolation measures of Russia, Iran, Cuba, and other countries from the SWIFT banking system, friendlier alternatives have been on the rise in a bid to fight the West’s economic hegemony and aggression.
Since the introduction of the new system, Russian banks have already delivered more than 129 million MIR cards. They are currently recognized in Armenia, Turkey, Vietnam, South Korea, Uzbekistan, Kazakhstan, Belarus, Kyrgyzstan, South Ossetia, Tajikistan, and Abkhazia.
The Iranian finance ministry’s banking and insurance department supposed in December that Iran could join the Mir payment system within months after reaching the conclusion of post-talks between Tehran and Moscow.
Report from a local Russian news outlet Vedomosti, Alexander Brazhnikov, the executive director of the Russian Association of the Crypto Industry and Blockchain, said that the Central Bank of Iran is pondering the formation of a stablecoin with the Russian Federation for international trade transaction payments.
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