- VTB Bank is the second-largest financial institution in Russia
- VTB Bank will take part in the Iran Finex 2024 for the first time
- VTB Bank has strengthened its relationship with the Central Bank of Iran (CBI)
- Russia and Iran are looking for opportunities in digital finance to avoid sanctions
Russia’s VTB Bank will participate for the first time in the 14th International Exhibition of Exchange, Bank & Insurance, scheduled from August 9 to 12.
This is likely to be a step towards broader adoption of digital currencies and cryptocurrencies and an attempt to reduce dependence on the dollar.
What Exactly Is VTB Bank’s Role In Iran Finex 2024?
Russia’s VTB Bank is the second-largest financial institution in the country, with assets totaling $290 billion. The state and capabilities of this bank significantly impact Russia’s economy.
Especially considering that Russia is currently under sanctions, making dollar operations more challenging and leading to economic collaboration with other sanctioned countries like Iran.
Specifically, as reported Saturday by IRNA, citing Saleh Sepasdar, secretary of the exhibition’s policy-making council:
- VTB Bank has been strengthening its brokerage relationships with the Central Bank of Iran (CBI) and other Iranian financial institutions in recent months.
- The bank plans to offer a range of banking services and operations in Iran, extending its influence beyond the four branches outside Russia.
- VTB aims to expand its services to countries in the Commonwealth of Independent States (CIS), Africa, Latin America, and Asia.
What Could VTB Bank’s Participation In Iran Finex 2024 Mean for the Future?
This could confirm the concerns of some political figures in the United States that adopting digital currencies that are not tied to a reserve currency could obscure the actual internal economic situation and help avoid inflation within the country.
Meanwhile, the adoption of cryptocurrencies could significantly aid in circumventing sanctions in the context ofinternational trade, eliminating the disadvantages or risks of trading with sanctioned countries for nations like China.
Conclusions
We may be witnessing cryptocurrencies becoming a significant player in the global economy, as their advantages are being recognized not only by crypto enthusiasts but also by major political powers.
It could also explain why American funds, especially Hong Kong ones, systematically buy Bitcoin regardless of market price fluctuations, which you can read here.
Furthermore, it could clarify why Trump’s position on creating a strategic Bitcoin reserve is starting to be supported by other key politicians, as you can see from this piece.
Fundamental moves are going into crypto right now, so we need to watch all parts closely.
