Russia and Iran are coming together to create a stablecoin
Russia and Iran are reportedly working together to issue a new cryptocurrency, a stablecoin, that will be backed by gold. This cryptocurrency would reportedly function as a payment method in foreign trades.
According to reports, the new stablecoin will be used as an alternative for cross-border transactions, with the objective of transitioning from USD and other fiat currencies to cryptocurrencies as a way of bypassing international banking systems and possible sanctions.
Russian news agency, Vedemosti, cited Anton Tkachev, a member of the Russian parliament’s Committee on Informational Policy, Information Technology and Communication, reporting that negotiations between the two countries are ongoing and there are some regulatory hurdles that need to be cleared as cryptocurrencies in Russia are still illegal. However, the legalization of their use is expected to happen some time in 2023.
In August 2022, the Mines and Trade Ministry of Iran approved the use of cryptocurrencies for imports. As a consequence, Iran has now made its first official import order, using 10 million USD’s worth of crypto.
In September 2022, the Bank of Russia admitted that payments in cryptocurrencies are inevitable given the current geopolitical conditions. As they start to ease up on their use in cross-border deals, a representative of Russia’s Ministry of Finance has stated that the country is looking for a non-restrictive policy for using cryptocurrencies.
CCO of Kinesis Money, Jai Bifulco, speculated that other countries might follow the path of Russia and Iran, saying, “It seems probable that we will see more agreements between nations for using gold-based stablecoins in trade. After all, the likes of China, Iran and Russia have obvious motivations to end the hegemony of the U.S. dollar.”
Sources: cointelegraph.com, www.forbes.com, thepaypers.com
analyst opinion
Diego Kebork
Russia and Iran are reportedly working together to issue a new cryptocurrency, a stablecoin, that will be backed by gold. This cryptocurrency would reportedly function as a payment method in foreign trades.
According to reports, the new stablecoin will be used as an alternative for cross-border transactions, with the objective of transitioning from USD and other fiat currencies to cryptocurrencies as a way of bypassing international banking systems and possible sanctions.
Russian news agency, Vedemosti, cited Anton Tkachev, a member of the Russian parliament’s Committee on Informational Policy, Information Technology and Communication, reporting that negotiations between the two countries are ongoing and there are some regulatory hurdles that need to be cleared as cryptocurrencies in Russia are still illegal. However, the legalization of their use is expected to happen some time in 2023.
In August 2022, the Mines and Trade Ministry of Iran approved the use of cryptocurrencies for imports. As a consequence, Iran has now made its first official import order, using 10 million USD’s worth of crypto.
In September 2022, the Bank of Russia admitted that payments in cryptocurrencies are inevitable given the current geopolitical conditions. As they start to ease up on their use in cross-border deals, a representative of Russia’s Ministry of Finance has stated that the country is looking for a non-restrictive policy for using cryptocurrencies.
CCO of Kinesis Money, Jai Bifulco, speculated that other countries might follow the path of Russia and Iran, saying, “It seems probable that we will see more agreements between nations for using gold-based stablecoins in trade. After all, the likes of China, Iran and Russia have obvious motivations to end the hegemony of the U.S. dollar.”
Sources: cointelegraph.com, www.forbes.com, thepaypers.com
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