Professionals and business leaders from Iran and Russia experts discussed the potential and pitfalls of cryptocurrency and blockchain use at the 15th International Financial Industry Exhibition (FINEX) in Tehran.
The meeting brought together speakers including Mustafa Amiri, secretary of Iran FinTech Association; Abbas Ashtiani, CEO of Iran Blockchain Association; Alexander Brazhnikov, executive director of the Russian Cryptocurrency and Blockchain Industries Association; and Hossein Khosropour, head of the Innovation and Investment Support at the ICT Ministry, way2pay website reported Saturday.
Ashtiani discussed the interaction between Iran and Russia in the blockchain sector, stating, "Measures taken last year were a prelude to future interaction between Iranian and Russian businesses through cryptocurrencies. However, we have a long way to go until the [full] implementation stage."
In talks “with the director of the Russian Blockchain Laboratory regarding trade via innovative financial technologies such as blockchain, we understood that the execution of crypto measures is subject to legal requirements on the Russian side. While progress has been made from our side through the Central Bank of Iran, there are some unresolved legal issues in Russia," Ashtiani noted. He emphasized that commercial capacities should not be limited to the crypto domain.
"Given the international sanctions against Russia, collaboration can be defined in all FinTech areas, such as LendTech and payment systems, including micro-transactions. An all-encompassing system for such collaboration has yet to be created." He did not elaborate.
Khosropour too took stock of obstacles in cryptocurrency business between the two countries. "Executive measures have been taken to remove legal barriers from the Russian side. The Central Bank of Russia has granted five businesses licenses to trade using financial technologies. However, to efficiently move forward we need momentum from the Russian side."
He added that "Business-level interaction between Russia and Iran have not yet taken shape, and we are working to address the challenges in both countries.”
Russian Serious About Employing Fintech
Brazhnikov addressed the regulatory measures regarding cryptocurrency in his country. "Last year there were major regulatory changes in Russia and now we are serious about utilizing the fintech potential in our country."
Referring to the international sanctions against Moscow after the invasion of Ukraine last year, Brazhnikov stated, "In light of the political challenges that have emerged during this period, businesses and officials in our country are working to expedite the legal process and amendments to reach a favorable juncture for utilizing cryptos and blockchain technology." So far, four new laws regarding digital currencies have been approved in Russia, he added.
Brazhnikov referred to the infrastructure developments in Iran and said that he was visiting to find ways to develop digital trade between the two sides.
"Iran has experience in conducting trade under heavy international sanctions. We in Russia too have faced such issues. We can learn from your experience to improve our economic interaction", he told the conferees.
In his opinion “significant changes in the global financial landscape will emerge in 2024 and digital currencies will play a more prominent role in international trade.
Unavoidable Delays
Mustafa Amiri of the Iran Fintech Association said although opportunities may have been missed due to some unavoidable delays, it is possible to rekindle past opportunities and create new ones through high-tech. He did not provide details about the delays.
Trade should not be limited to the cryptocurrency domain. Despite international sanctions against Russia, collaborative opportunities can be defined in various fintech areas such as fintech hubs, payment systems and micropayments, he stressed.
With both countries navigating complex legal and regulatory frameworks, establishing a comprehensive system for such collaboration is a key objective. As sanctions against Russia continue to impact its economy, exploring avenues for cooperation in various FinTech domains, including payment systems, could present opportunities for both nations, he told the meeting.
Iranian and Russian tech firms signed a deal in 2018, per which the latter agreed to help Iran build its crypto-economy. The document was signed after Iranian financial institutions were cut off from SWIFT, the international system that enables banks to transmit messages and transfer funds across borders, between the RACIB and Iran Blockchain Labs (IBL), a research and advisory center established by Iran’s Sharif University of Technology with the participation of the central bank.
After Russia was sanctioned last year, which resulted in cutting of Russian banks’ access to SWIFT, Tehran and Moscow are pooling minds to create a rival to SWIFT for cross-border payments. Central banks of the two countries are also working on connecting their domestic bank card networks.
