Iran and Russia Considering The Use Of Cryptocurrency To Circumvent US Sanctions

Mohammad-Reza Pourebrahimi, a member of the Iranian parliament has reportedly stated that Iran and Russia are considering to use cryptocurrency in bilateral trades to circumvent the sanctions imposed by the USA. He raised the idea in a bilateral meeting with Dmitry Mezentsev, the head of the Russian Federation Council Committee on Economic Policy, according to the Iranian News Portal PressTV.
Mohammed-Reza Pourebrahimi is the head of the Iranian Parliamentary Commission for Economic Affairs, the commission who has the job of determining the economic policy of the country, that is fighting a series of economic sanctions applied by the USA and the United Nations over the Iranian Nuclear Program. These sanctions include a ban on certain imports and on oil exports to certain countries.
The idea was accepted with great interest from Dmitry Mezentev, who said that establishing mutual bilateral interbank relationships was of great importance in a climate of sanctions taken against both countries. This would be the first use of cryptocurrencies being used as legitimate payment in a bilateral agreement to circumvent sanctions. The specific cryptocurrency that would be used has not been determined, but Pourebrahimi also declared that they have commanded the Central bank of Iran with the task of issuing their own national cryptocurrency.
The idea of using cryptocurrencies to circumvent economic sanctions is not a new one. Venezuela, whose key politicians are under economic sanctions from the USA government, also created the first official national cryptocurrency, the Petro, with the purpose of using it to circumvent the US blockade. According to Time, this was also planned and launched in coordination with Russian consultants close to President Putin. But that experiment went wrong, and President Trump also banned any US citizen from buying any Venezuelan crypto asset. Also, Bitfinex, an important crypto exchange, refused to list the Petro due to “lack of utility” of the token.
But if they use an already existing cryptocurrency the outcome could be different. Iran is actively preparing itself for further sanctions that would be applied later this year.