Russia and Iran mulling over unified digital currency for international settlement

02/17/2023 09:22 • Tech Ticker • 139 views

According to reports, according to the Russian Satellite News Agency on the 17th, Valery Gartuk, chairman of the Russian Duma Competition Protection Commission, said that Russia and Iran were discussing the creation of a unified digital currency for international settlement, which was also raised during the visit of the Russian Duma delegation to Iran.

The delegation of the Russian State Duma discussed the issue of international settlement digital currency during its visit to Iraq

Interpret the above information:

Russia and Iran are reportedly in discussions about the creation of a unified digital currency for international settlement. This proposal was raised during the visit of the Russian Duma delegation to Iran, according to Valery Gartuk, chairman of the Russian Duma Competition Protection Commission. The move highlights the growing trend of countries looking to develop their own digital currency that can be used for international trade and bypass the US dollar-dominated global financial system.

Russia and Iran have both been subject to economic sanctions from the US in recent years, leading to a desire for alternative means of conducting financial transactions between the two countries. A unified digital currency could enable them to bypass the traditional financial system and reduce their reliance on the US dollar for trade.

This is not the first time that countries have looked to develop their own digital currency for international settlement. China has been developing its digital currency, the digital yuan, for several years, while the EU is also considering creating a digital euro. The rise of digital currencies could potentially challenge the dominance of the US dollar in global trade and could also impact the traditional banking system.

However, there are also concerns around the potential risks associated with digital currencies, including the potential for money laundering and cyberattacks. Governments and financial institutions will need to ensure that any digital currency solutions have robust security measures in place to prevent fraud and protect user data.

Overall, the move by Russia and Iran to explore a unified digital currency highlights their desire to reduce their dependence on the global financial system dominated by the US dollar. This could have significant implications for the balance of power in the global economy and the future of international trade.

In conclusion, the rise of digital currencies and the desire for countries to develop their own solutions for international settlement represents a significant shift in the global financial landscape. While there are risks associated with digital currencies, the potential benefits of reducing dependence on traditional financial systems could be significant. It remains to be seen whether Russia and Iran will be successful in creating a unified digital currency, but the trend towards digital currencies is likely to continue.

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