Development Of Iran’s Crypto Economy

The Russian Association of Cryptocurrency and Blockchain and Iran Blockchain Labs both signed a partnership document in which the two will go forward and implement digital technology in Iran. Yuri Pripachkin, the RACIB’s president, Iran is well-situated to utilize the expertise and knowledge of Russian blockchain developers. The US-imposed sanctions upon Iran are much more challenging than those imposed on Russia.

In addition to help from Russian cryptocurrency experts, Iran’s economy may be helped by the country’s legal experts as well. According to Russian officials, the “supernational character of the instruments of the crypto-economy” may be able to work around the sanctions. Further, “In the current geopolitical situation, it is necessary to utilize that potential.”

The agreement between Russia and Iran may have taken place at the right time – a few days ago, Iran’s financial hubs were prevented from accessing swift, which enables cross-border transactions. This limits international payments, crucial for a country that heavily relies on the export of oil and gas. Though Iran’s authorities initially were not in favor of the proliferation of cryptocurrency and such technologies, the tide seems to have changed I recent months. Cryptocurrencies may help the country overcome the sanctions.

Perhaps a dent in Iran’s effort is that there have been several cryptocurrency exchanges that excluded the country from transacting. It is difficult to tell how many will follow suit.

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