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Russia and Iran are postponing the launch of cross-border payments in digital assets

The governments of the two countries said they are exploring the use of crypto assets in cross-border transactions, but will not rush into action until the legal framework is prepared.

Russia and Iran seek to de-dollarize their trade deals and thus get out of international sanctions that prevent national companies from doing business with international partners. However, the prospect of using cryptocurrencies as a payment instrument for making cross-border payments is of concern to regulators in both Russia and Iran.

Last year, Deputy Minister of Communications Reza Bagheri Asl stated that the government of the Islamic Republic of Iran will never recognize any private digital currencies as a means of payment.. The official believes that the use of any currency other than the national one is beyond sovereignty, contrary to currency law and banking legislation.

For its part, the Bank of Russia, represented by Deputy Chairman Olga Skorobogatova, said that the agency cannot approve the use of digital assets for international settlements without testing in a “safe sandbox”.

At the beginning of the year, officials of the two countries said they were considering the potential possibility of creating a stablecoin of the Persian region, which will be used in foreign trade settlements instead of the dollar, ruble and Iranian rial.. The stablecoin of the Persian region was supposed to be backed by gold and used as a means of payment in foreign trade transactions. The practical use of the stablecoin is planned on the territory of the Lotus Special Economic Zone in the Astrakhan Region and the Anzeli Free Economic Zone in Iran.