Russia and Iran are seeking to develop a gold-backed stablecoin to facilitate cross-border trade. This will allow the two countries to conduct cross-border commercial transactions. This will allow them to bypass international economic sanctions against their countries.
A joint stablecoin to evade sanctions?
Both countries are targets of economic sanctions and have naturally found refuge in cryptocurrencies. According to the revelation of the executive director of the Russian Crypto and Blockchain Industry Association, Alexander Brazhonikov, the Iranian Central Bank and the Russian Federation are currently discussing the possibility of creating a joint stablecoin. This may allow them to settle cross-border trade transactions.
In a report by Vedomosti, a local Russian media outlet, Brazhnikov says that the stablecoin will be backed by gold. He also said that the cryptocurrency will be used daily in Astrakhan, a free trade zone. In the Russian-Iranian economic history, this city has been a key place to establish relations between these two countries. In fact, it was in Astrakhan that Russia began accepting Iranian goods for the first time.
As a reminder, Iran turned to Bitcoin and cryptocurrencies for the settlement of these imports already several months ago. However, the country made its first import order in August 2022 for a sum of about $10 million.
A common stablecoin, a project still under discussion at the state level
The issue of issuing a stablecoin backed by gold is still under discussion. At least that is what Anton Tkschev, the State Deputy of the Russian Duma, said.
However, he pointed out that this process will move forward once the Kremlin has fully regulated cryptocurrencies in the country.
Although Russia’s central bank does not support crypto payments, it continues to show interest in using them for international transactions.
A month ago, Russia’s central bank began a study on the possibilities of using Bitcoin for international payments. However, on December 19, 2022, Deputy Monetary President Olga Skorobogatova announced plans to conduct the first tests of cross-border cryptocurrency payments with private companies.
This stablecoin could be THE effective solution that Russia has been looking for a long time to bypass embargoes. Russia can benefit from the experience gained by Iran, a country that has already managed to pay for imports using crypto. Who knows, maybe this Stablecoin will compromise the hegemony of the U.S. dollar for international trade.c
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.