Iran Partnered With Russia to Develop its Crypto Economy

By Chetna Phour

Recently, the leading industry organizations from Iran and Russia signed an agreement for the development of crypto-economy in the Islamic Republic.

Iran Blockchain Labs (IBL) and Russian Association of Crypto Industry and Blockchain (RACIB) signed the agreement. IBL is the research and advisory center which is established by the Sharif University of Technology with the participation of the Central Bank of Iran. The innovation hub is created for the implementation of digital technologies such as blockchain in Iran. According to the newly signed agreement, Russian experts will provide support to Iran for the development of its crypto industry. In the cooperation

The president of RACIB, Yuri Paripachkin said that with the agreement Iran would be able to take advantage of the expertise of Russian developers. Yuri believes that the situation in Iran is much more complicated than Russia because of the United States sanctions. Recently, the United States imposed more stringent sanctions against Iran. As a result of some of the major cryptocurrency exchanges such as Bittrex and Binance unofficially stopped their services in the Islamic republic.

Also read: Binance and Bittrex Cut Ties With Iran

Iranian financial institutions were denied to access the international payment system Swift which enables the banks to transfer funds and transmit messages across borders. As the Islamic Republic is a major oil and gas exporters and such kinds of measures will severely affect the economy of Iran. In response, Iran has finalized the development of Rial backed national cryptocurrency. The Central Bank of Iran (CBI) has also approved the uses of national cryptocurrency. Initially, Iranian authorities opposed the acceptance of cryptocurrencies in the country, but now they have recognized their potential to use them to evade the sanctions. The ties with Russia will help the Islamic Republic to develop its crypto industry at a rapid pace. With Russian developers, Iran is actively developing an alternative to the global interbank network.

During an international conference, Chain Point 18 which was held in November both the countries agreed on the cooperation. The document was signed by Yuri Pripachkin, Mohammad Davatgar, and Vigen Arushanyan.  Mohammad Davatgar is the Chief Executive Officer of IBL and Vigen Arushanyan is the president of Armenian blockchain association Noor. Noor is also taking part in the joint effort.

Legal experts from Russia will also help the Islamic Republic to legalize and regulate the crypto industry in the country. According to a Russian official, cryptocurrencies can be effectively used to circumvent sanctions and restrictions.He said that in the current geopolitical situation, it is necessary to utilize the potential of digital assets.

Chetna Phour

Chetna is a passionate content writer who loves to write on a variety of topics. She loves to explore different horizons and its time for cryptocurrencies now.

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