Currently, both Iran and Russia face sanctions from the United States. An assortment of other countries have placed sanctions on the two nations as well. Sanctions hurt a given country by limiting the transactions they can make with other nations. For obvious reasons, each country would prefer to not be sanctioned. The United States doesn't show signs of easing sanctions on either country, so another solution is necessary.
Russia and Iran To Collaborate On Cryptocurrencies?
RBC, a Russian news provider, revealed a potential solution for both nations. On May 17, the news provider reported Iran and Russia intend to utilize cryptocurrencies. The use of cryptocurrencies would help the each nation bypass traditional sanctions. Every transaction would be completed through cryptocurrency, which means nobody would know Iran and Russia are getting around the sanctions. It's a clever idea to say the least.
An Example of Using Cryptocurrencies To Get Around Sanctions
Venezuela, which itself is under sanctions, released its own cryptocurrency months ago. The Petro is backed by oil and is designed to bypass sanctions. In this case, US officials banned the purchase or trading of Petro by American citizens. A number of countries have mentioned plans to utilize cryptocurrencies in the coming years. Even Russia expects to release its CryptoRuble in the second half of 2019.
A Meeting Is Already Planned and Dated
According to reports, Iran and Russia will soon convene to discuss a cryptocurrency partnership. The two nations may try to create their own cryptocurrency, or they could discuss how to use existing currencies to get passed sanctions. Both countries have already agree to collaborate on a combined strategy together. Apparently, this meeting will occur in early July, but it remains to be seen what comes from the effort.
Iran feels the most financial pain from US sanctions. Then again, sanctions are more than a simple annoyance for Russia, too. Both countries could enact various measures with cryptocurrencies in order to skirt around sanctions. Countries like the US can only do so much to prevent this scenario. In the end, Russia and Iran should make an announcement of their partnership's plans soon, or the details will be leaked in the media.