Iran Taps Russia Expertise ToDevelop Rial-Backed Cryptocurrency

Iran has once again reiterated how serious it is about leveraging the power of cryptocurrency to circumvent economic sanctions. The country’s hub tasked with the responsibility of exploring digital technologies has inked a strategic collaboration with Russian developers. A partnership with Russia comes just days after Iran confirmed it was in the final stages of unveiling a Rial-backed cryptocurrency.

Iran Blockchain Lab has since confirmed it will work with Russian Association of Crypto industry and Blockchain (RACIB) on the development of the Rial-backed cryptocurrency.  Russian experts are also to provide support for the development of the Islamic state digital economy. They will also assist on the setting up of frameworks for legalization and regulation of cryptocurrencies.

RACIB’s president Yuri Pripachkin has already confirmed the collaboration. The two nations find themselves as allies on feeling the full force of economy sanctions propagated by the west. Iran remains the most affected global payment system SWIFT having already struck it out of the supported list.

Swift blow has essentially made it impossible to move money in and out of Iran.  Financial institutions in the country are no longer able to send and receive messages as well as transfer funds across the border over the SWIFT network.

The SWIFT network struck Iran out as part of the latest U.S sanctions as tension between the two countries escalate. The move has essentially rendered it impossible for the country, which is a major exporter of oil and gas to engage in international trade.

SWIFT blocked is not the only issue that Iran has to contend with. A Number of cryptocurrency exchanges have already struck the country from the list of supported countries. What this means is that people in the country can no longer access cryptocurrencies in the platforms.

Cryptocurrency technology is the last piece of hope that will help Iran circumvent the sanctions. Iran, an initial proponent of cryptocurrencies, has had to have a change of stance faced with the ever-escalating sanctions.

A change of stance has seen the Islamic state take steps towards legalizing cryptocurrency mining. The country considers cryptocurrency mining a lucrative economic activity. It has since started regulating the importation of mining equipment.

Iran joins Venezuela, which has also tapped the power of cryptocurrencies as it looks to evade U.S economic sanctions. The South America nation is relying on the El Petro cryptocurrency to reinvigorate its import and export business.