Cryptocurrencies are finding great use in countries at odds with the US-controlled global financial system. Therefore, reports of Iran getting help from Russian developers in fine-tuning its crypto ambition are not surprising.
As per the reports, a leading blockchain organisation in both Iran and Russia agreed to venture jointly in the project. Particularly, the intention is to help develop the nascent cryptocurrency sector of the Islamic Republic of Iran.
Iran to get help from Russian developers to mitigate global isolation
Specifically, the agreement took place between the Iran Blockchain Labs (IBL) and Russian Association of Crypto Industry and Blockchain (RACIB). The two signed the documents of the agreement in Yerevan, Armenia. They were attending a blockchain-related international conference called Chain Point 18.
In particular, IBL is a research center that doubles as an advisory outfit to the government on blockchain matters. As per the signed documents, Russian developers will work in tandem with the team at IBL to develop basic crypto-standards.
Interestingly, Iran is in an urgent need for an alternative channel into international trade after US tightened her sanctions. As a result, most of the Iranian economy is cut off from the global financial industry.
Crypto project to resuscitate economy
Particularly, the highlight to the developments came to bear when SWIFT disconnected Iranian banks from its network. The Society of Worldwide Interbank Financial Transactions (SWIFT) termed the development “regrettable.”
With the disconnection, cryptocurrency looks like the last resort for the country. Further, Iran’s economy is already suffering from sanctions as most of the country experiences credit shortages.
Specifically for the purpose of busting the American sanctions, Iran launched a national cryptocurrency project early this year.
According to Press TV, the country is trying to “prepare the grounds to use a domestic digital currency.” However, Iran lacks much of the technical know-how to deliver the promise of the project. For Iran to get help from Russian developers is probably advisable to help resuscitate a failing economy.
However, there is continuing isolation of the country as even some crypto firms cut ties with Iran. Binance and Bittrex are some of the cryptocurrency exchanges no longer offering services to traders in Iran.