Both countries shall use this stablecoin to facilitate cross-border transactions and foreign trade between the two countries.
Amid the changing global geopolitical scenario, Iran and Russia have teamed up to launch a joint gold-backed stablecoin into the market. The secretary general of the Russian Cryptocurrency Industry and Blockchain Association recently said that the Central Bank of Iran is considering creating a stablecoin similar to Russian banks.
Russian news agency Vedomosti has described the stablecoin as a “persian gulf region token” and will serve as a means of payment in foreign trade. Instead of using , we plan to use this stablecoin to enable cross-border transactions.
Additionally, the report suggests that certain stablecoins will be used for operations in Astrakhan’s special economic zone. This is the same place where Russia started accepting Iranian cargo shipments.
Russian parliamentarian and member of the Information Policy Committee, Anton Tkachev, has said that a joint stablecoin project will only be possible after the digital asset market is fully regulated in the country.
There have been multiple delays in the regulation of the crypto market by Russian lawmakers. However, the lower house of the Russian parliament has again promised to start regulating crypto trading in 2023. Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, said:
“I can assure everyone that in the next year cryptocurrencies will definitely exist as a legal product. There will definitely be a law … in the Russian Federation, the use of cryptocurrencies as a means of payment for internal settlement is prohibited. I can only say unequivocally that I can’t.”
Crypto Regulation in Russia and Iran
Iran and Russia have banned local residents from using cryptocurrencies such as Bitcoin (BTC) and US dollar-backed stablecoins such as Tether (USDT). On the other hand, however, both countries are actively considering circumventing international sanctions and using cryptocurrencies as a tool for foreign trade.
In August 2022, Iran’s Ministry of Industry, Mines and Trade approved the use of digital assets for imports into the country. The local government said the new measures would help Iran ease global trade sanctions.
On the other hand, Bank of Russia has historically opposed using digital assets as a payment method. However, they have agreed to use crypto in foreign trade to mitigate the effects of global sanctions.
Bhushan is a FinTech enthusiast and has a great knack for understanding financial markets. His interests in economics and finance focus on the emerging blockchain technology and cryptocurrency market. He is in a continuous learning process and keeps himself motivated by sharing what he has learned. In his free time, he reads thriller novels and sometimes develops his cooking skills.