Iran and Russia Working on Bilateral CBDC-powered Trade Solutions
Iran and Russia are working on CBDC and “digital financial asset” (DFA)-powered trade solutions, an Iranian official has confirmed.
Speaking to the Russian media outlet Izvestia, Rahimi Mohsen, the trade attaché of the Iranian Embassy in Russia, said that “nations” were “exploring the use of DFAs and central bank digital currencies.”
Mohsen claimed that CBDC-powered “options” could “simplify trade” between Tehran and Moscow.
The attaché stated that CBDCs, including the digital ruble and Iran’s project, the so-called crypto-rial, could “potentially mitigate the impact of sanctions.”
Russia has been hit with multiple sanctions packages from the US, the EU, and allied nations since the outbreak of war in Ukraine in 2022.
Iran, meanwhile, is facing fresh sanctions following a missile strike on Israel in mid-April, the UK government announced last week.
The suggestion that Iran is sourcing weapons from Russia has raised concerns in Israel about the implications of expanding Moscow-Tehran defense ties https://t.co/Vrof9d07EP
— Bloomberg (@business) April 26, 2024
Mohsen conceded that “difficulties remain” with CBDC-related payments, but said lawmakers would need to “create infrastructure and regulations for new payment methods.”
He added that Iran “intends to cooperate with Russia” to “implement” new regulations, as “Tehran maintains an effective trade partnership with Moscow.”
Sanctions packages are making Iran and Moscow “more interested than ever” in cooperating, claimed Maxim Chereshnev, the Chairman of Russia’s Council for the Development of Foreign Trade and International Economic Relations.
Chereshnev added that a CBDC-powered “partnership” with Iran was “strategically important” to Moscow.
The move could allow Moscow to
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