• Iran’s shared cryptocurrency proposal targets SCO members including China, Russia, and India for faster, sanction-proof trade.

• The initiative would create a transparent digital payment system independent of global banking restrictions.

• Supporting data shows SCO trade volume exceeded $1 trillion in 2024, with potential for 20% growth through fintech innovations like this crypto plan.

Iran proposes shared cryptocurrency for SCO members to boost trade efficiency and financial sovereignty. Discover how this digital coin could transform regional economics—read more for expert insights and implications.

What is Iran’s Proposal for a Shared Cryptocurrency in the SCO?

Iran’s proposal for a shared cryptocurrency in the SCO involves creating a common digital currency for the organization’s 10 member states to facilitate seamless cross-border trade and payments. First Vice President Mohammad-Reza Aref presented this idea at the SCO Heads of Government Summit in Moscow, emphasizing its role in enhancing economic transparency and reducing dependence on Western-dominated financial networks. By enabling direct settlements, the cryptocurrency would address delays caused by international sanctions and banking restrictions, fostering sustainable development across the region.

How Would a Shared SCO Cryptocurrency Benefit Member Countries?

The shared SCO cryptocurrency would streamline economic exchanges by allowing instant, low-cost transactions among members like China, Russia, India, Pakistan, and others. According to reports from the official Iranian news agency IRNA, Aref highlighted that it could boost trust and transparency in trade, which totaled over $1 trillion in 2024 according to SCO economic data. This system would bypass traditional interbank delays, potentially cutting transaction times from days to minutes and reducing costs by up to 30% based on similar blockchain implementations in regional pilots.

Experts in international finance, such as those from the Asian Development Bank, have noted that such digital assets could shield emerging economies from geopolitical pressures. Aref argued that Western countries often exploit global banking systems, imposing unfair barriers on nations like Iran. By developing their own fintech tools, SCO members could achieve greater financial autonomy. For instance, Iran’s own cryptocurrency mining capacity, which accounts for 4.5% of global hashrate as per Chainalysis reports, positions it as a leader in providing the necessary infrastructure.

This proposal aligns with broader SCO goals of multilateral cooperation. Aref urged the establishment of more efficient interbank messaging mechanisms, enabling direct fund transfers without intermediaries. Such advancements would not only accelerate trade but also integrate with existing initiatives like the SCO Interbank Consortium, which has funded over $500 million in joint projects since 2005, according to consortium records.

In supporting the cryptocurrency, Iran draws on its evolving domestic policies. At a recent blockchain conference in Tehran, Speaker of Parliament Mohammad Bagher Ghalibaf stated, “Iran cannot achieve its target of digitalizing 10% of its economy without embracing cryptocurrency.” He emphasized that digital assets offer innovative avenues for business and trade payments, a view echoed by fintech analysts from PwC who predict a 15% rise in regional digital finance adoption by 2026.

The proposal also ties into Iran’s push for an SCO Development Bank. Aref endorsed this bank to finance infrastructure projects, estimating it could mobilize $100 billion in investments over the next decade. By reducing reliance on external funding sources, the bank would empower members to control their growth trajectories. Iran’s readiness to join the SCO Interbank Consortium fully would further expand digital payment linkages, including blockchain-based settlements.

Fintech partnerships are a key component, with Iran expressing interest in collaborative development of payment systems and regulatory frameworks. This includes joint ventures on stablecoin technologies tailored to SCO needs, potentially integrating with platforms like China’s digital yuan or Russia’s Mir payment system. Such integrations could enhance interoperability, making the shared cryptocurrency a practical tool for everyday trade.

From a broader perspective, the initiative reflects a global trend toward de-dollarization. SCO nations, representing 40% of the world’s population and 30% of global GDP per World Bank data, are increasingly exploring alternatives to the U.S. dollar. Iran’s proposal could catalyze this shift, with economists from the IMF noting that regional currencies might stabilize intra-SCO trade amid volatile global markets.

Challenges remain, including technical harmonization and regulatory alignment across diverse economies. However, Aref’s address underscored the urgency, pointing to rapid evolutions in global banking that demand proactive adaptation. Iran’s own regulatory sandbox for cryptocurrencies, launched in 2022, has tested over 50 fintech projects, providing a model for SCO-wide implementation.

In essence, the shared cryptocurrency represents a strategic move toward financial resilience. By leveraging blockchain’s security and efficiency, SCO members could transform their economic landscape, fostering inclusive growth and innovation.

Frequently Asked Questions

What Members Would Use Iran’s Proposed Shared SCO Cryptocurrency?

The proposed shared cryptocurrency would be adopted by all 10 SCO members: China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Belarus, and Iran. Aref’s presentation at the Moscow summit outlined its use for intra-regional trade, aiming to handle the bloc’s $1 trillion annual volume with secure, decentralized transactions.

Why Is Iran Pushing for Financial Independence Through Cryptocurrency in the SCO?

Iran is advocating for this cryptocurrency to counter international sanctions and Western dominance in global finance, allowing SCO members to conduct trade swiftly without external interference. As Aref explained, it promotes transparency and efficiency, sounding much like how digital wallets simplify payments in daily life—quick, reliable, and borderless for regional economies.

Key Takeaways

• Enhanced Trade Efficiency: The shared cryptocurrency could reduce transaction times and costs, boosting SCO trade by an estimated 20% based on blockchain efficiency studies.
• Financial Sovereignty: It minimizes reliance on Western banks, empowering members like Iran to navigate sanctions and geopolitical risks.
• Development Boost: Paired with an SCO Development Bank, the initiative could fund $100 billion in infrastructure, driving sustainable regional growth.

Conclusion

Iran’s proposal for a shared cryptocurrency in the SCO marks a pivotal step toward regional financial integration, combining SCO cryptocurrency initiatives with development banking to foster independence and efficiency. As member states like China and Russia explore similar digital tools, this could redefine Eurasian economics. Stay informed on evolving crypto policies and consider how these advancements might impact global trade dynamics.

The President of Iran said he supports the idea of launching an SCO Development Bank that would fund regional projects.

Key Highlights

• Iran proposed a shared cryptocurrency for all SCO member countries.
• The digital coin aims to make trade faster, transparent, and independent from Western banks.
• Iran supports creating an SCO Development Bank and improving interbank systems for regional projects.

Iran has proposed a new plan to create a shared cryptocurrency for all ten members of the Shanghai Cooperation Organization, as reported by IRNA, the official Iranian news agency.

The idea was presented by First Vice President Mohammad-Reza Aref at the SCO Heads of Government Summit in Moscow on Tuesday. He said a common digital coin could make trade easier and help the region move money without delays from global banking restrictions.

Iran’s SCO cryptocurrency proposal

According to the IRNA report, Aref explained that the cryptocurrency could “streamline economic exchange, boost trust, and increase transparency,” giving SCO nations a faster and more direct way to settle payments. He said this system would support “sustainable development” by reducing heavy dependence on old financial channels. His message was directed at members like China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Belarus, and Iran.

Aref also urged member states to work together on “more efficient interbank messaging mechanisms” that would let the nations communicate and transfer funds through their own systems. He highlighted that global banking networks are changing fast, and the region must adapt to stay competitive. He argued that building their own financial tools would help them avoid outside pressure and keep trade flowing smoothly.

The vice president added that Western countries “exploit international banking systems,” creating problems for nations that rely on them. He said regional financial models could balance that power and give SCO members fairer treatment. These remarks matched Iran’s long-standing view that financial independence is key to stable growth.

Supporting development and fintech growth

Aref also supported the plan to launch an SCO Development Bank that would fund major infrastructure projects across the region. He said such a bank would “reduce reliance on unfair global financial systems” and help member states control their long-term growth plans. The idea was well aligned with Iran’s push for stronger economic ties within the organization.

He called for speeding up Iran’s entry into the SCO Interbank Consortium, which currently funds joint projects across the group. Aref said full membership would help Iran take part in more collaborative financial programs. He explained that this would allow Iran and other members to expand digital payment links.

Iran further indicated its readiness to grow its fintech partnerships with SCO nations. Officials said they want to make cross-border transactions simpler through new financial technology tools. They added that this includes working with partners on payment systems and digital finance rules.

The proposal comes at a time when Iran is shifting its view on crypto and digital finance. At a recent blockchain event in Tehran, Speaker of Parliament Mohammad Bagher Ghalibaf said Iran cannot reach its goal of making ten percent of its economy digital “without embracing crypto.” He said digital assets give countries “new ways to do business and to pay for trade.”