Russia and Iran starts developing a shared stablecoin based on gold

Key takeaways:

• To facilitate payments in cross-border business operations, the Central Bank of Iran and the Russian Federation are thinking about creating a stablecoin.

• When the cryptocurrency industry is completely regulated, the conversation would go to the state level.

Russia and Iran are now looking into the creation of a joint stablecoin that would be backed by gold in view of the improvements in digital assets and the demands placed on states.

The information was validated by Anton Tkachev, a member of the Duma Committee on Information Policy, Information Technology, and Communications. According to Tkachev, the parties are actively debating the situation.

The Executive Director of the Russian Association of Crypto industry and Discovery, Alexander Brazhnikov, revealed this to a russian news agency, Vedomosti. While confirming the transfer, Anton Tkachev, a member of the Duma Committee on Information Security and Communications, made clear that the matter would not be extensively addressed at the state level until cryptocurrencies were completely regulated in Russia.

According to Brazhnikov, the token is anticipated to be backed by gold, making it a stablecoin of its kind. A stablecoin is a cryptocurrency whose value is tied to either precious metals or so-called fiat (the “traditional” money produced by states).

Rather than employing fiat currencies like the US dollar, the Russian ruble, or the Iranian rial, the stablecoin intends to enable cross-border transactions. According to the article, the possible cryptocurrency would function in Astrakhan’s special economic zone, where Russia began to accept Iranian commercial shipments.

Russia forbids the use of cryptocurrencies for domestic transactions. The country has, nevertheless, welcomed cryptocurrency payments for import-export transactions.

In agreements for international trade, the new “token of the Persian Gulf region” would take the place of US dollars, Russian rubles, or Iranian rials. It is reasonable to suppose that Russia and Iran are working together to avoid the severe sanctions the West imposed on both nations.

By January 2023, Russia’s measure to regulate cryptocurrency mining and the sale of derived coins may have been passed. On November 17, the proposal was made to the State Duma, the lower house of the Russian parliament.