The possible stablecoin would be used instead of fiat currencies like the U.S. dollar, the Russian ruble, or the Iranian rial for cross-border transactions.
Recent rumours indicate that the governments of Russia and Iran are working together to produce a new cryptocurrency backed by gold. This development is reportedly taking place in Russia.
The Russian news agency Vedomosti says that Iran is working with Russia to make a “token of the Persian Gulf region” that could be used in international trade.
Alexander Brazhnikov, the head of the Russian Association of Crypto Industry and Blockchain, says that the token will likely be released as a stablecoin backed by gold.
The stablecoin is meant to be used instead of fiat currencies like the US dollar, the Russian ruble, or the Iranian rial for cross-border transactions. According to the source, the potential cryptocurrency might be used in a special economic zone in Astrakhan, where Russia first started accepting shipments of Iranian merchandise.
Anton Tkachev, who is on the Information Policy, Information Technology, and Communications Committee of the Russian legislature, said that people couldn’t work together to make a stablecoin until the digital asset market in Russia was fully regulated.
This remark was given in response to a question concerning whether or not it would be possible for multiple parties to work together to create a stablecoin. After many delays, the lower house of the Russian parliament promised again that it would start to handle crypto transactions in 2023.
Iran and Russia have made it against the law for their nationals to purchase cryptocurrencies such as Bitcoin and stablecoins such as Tether (USDT). At the same time, Russia and Iran have been putting much effort into using cryptocurrency to conduct business with other nations.
In August 2022, Iran’s Ministry of Industry, Mines, and Trade said that cryptocurrency could be used to pay for imports into the country, even though trade sanctions were still in place. The local government said the new steps would help Iran deal with the effects of international trade sanctions. Iran then bought its first goods from another country using $10 million worth of cryptocurrency.
The Bank of Russia has been against using crypto as a payment method. Still, they agreed to let crypto be used in international trade to lessen the effects of international sanctions. But the regulator has never said which cryptocurrencies would be used for these deals.
23 Jan 2023
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