Russia-Iran will use Cryptocurrency in International Trade

The Russian government has said it is considering the idea of using crypto in a trade deal with Iran – but will not rush into action. According to RIA Novosti, Moscow wants to establish a “clear regulatory framework” before allowing Russian companies to do business with Tehran in crypto.

The media outlet quoted Russian Ambassador to Tehran Alexey Dedov as saying that Moscow and Tehran officials are currently in the negotiation stage. Dedov added that nothing has been finalized yet. Both Russia and Iran are considering allowing the use of digital currencies and digital financial assets (DFA) to settle exports and imports. However, it is still in the process of reaching a definitive agreement on this matter. “DFA” is a term used by many Russian lawmakers to refer to crypto assets including Bitcoin (BTC). 

However, DFA is often combined with central bank digital currencies and stablecoins – even in legal documentation. Both Russia and Iran are believed to be keen to de-dollarize their trade deals. Countries aim to prevent US-led sanctions from disrupting their ability to trade with international partners. Many forward-looking Russian government departments are pushing for regulators to allow trading firms to use crypto as a payment tool in cross-border transactions.

Moscow plans to de-dollarize the nation

Moscow plans to de-dollarize the nation ahead of the Russia-Ukraine conflict and subsequent sanctions. Russia's Ministry of Finance and Trade has called for the legalization of crypto-powered trade. However, Moscow is not united on this issue. The central bank opposes the idea of allowing Russian companies to use crypto. Its leaders worry that the tokens received in trade deals will circulate in the Russian economy. 

The central bank has instead insisted that all crypto-powered businesses operate within a regulatory sandbox – operating under its supervision. Police also expressed concern that allowing companies to trade freely using crypto could lead to money laundering.

Crypto-Driven Trade: The Future of Russia and Iran?

Moscow and Tehran are slow to decide in the right direction. That's because both are convinced that digital tokens now represent the future for their exporters. Last month, Russian parliamentarians and crypto industry leaders talked about a Russian-Iranian plan to co-launch a gold-pegged stablecoin for use in international trade. More recently, BRICS (Brazil, Russia, India, China, and South Africa) leaders agreed on a common Revisited plan to launch a stablecoin – first launched in 2019. Russian Foreign Minister Sergei Lavrov said BRICS leaders have agreed to discuss creating a “common currency” when the group meets for a summit this August.