Prospects for trade and economic relations between Russia and Iran in the framework of introducing digital technologies: stablecoin

Abstract

New reality, given targeted sanctions against Russia, makes it necessary to remove barriers in international trade and economic relations.The sanctions against Russia have accelerated the emergence of new financial systems,an international interbank information transfer system outside the SWIFT system, and the creation of logistics corridors to redirect exports to the South and East.The article analyzes Russia's trade and economicrelations with Iran and the prospects of creating a payment instrument in foreign trade transactions represented by a cryptocurrency (since Iran is the first country to legalize mining of cryptocurrency). In Iran, digital money mining is a separate legalized industry, and the country uses cryptocurrency as a reserve to pay for imports and exports.The author believes that applying blockchain as a breakthrough technology that can change the economy is reasonable and will likely continue to evolve. In 2022, the number of Western sanctions imposed on Russia exceeded the number of sanctions applied against Iran,given that the Republic of Iran has been under sanctions for nearly 44 years and has a practice of foreign trade in cryptocurrencies.The experience of introducing the stablecoin within the foreign trade relations between Russia and Iran can be used in trade and economic relations with other countries. Stablecoins have the potential to enhance the current infrastructure for international trade.