Iran and Russia need to challenge new stablecoin backed by gold


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The Central Financial institution of Iran is reportedly cooperating with the Russian authorities to collectively challenge a brand new cryptocurrency backed by gold.

Iran is working with Russia to create a “token of the Persian Gulf area” that may function a cost technique in international commerce, Russia’s information company Vedomosti reported on Jan. 15.

The token is projected to be issued within the type of a stablecoin backed by gold, based on Alexander Brazhnikov, govt director of the Russian Affiliation of Crypto Business and Blockchain (RACIB).

The stablecoin goals to allow cross-border transactions as an alternative of fiat currencies like the USA’ greenback, the Russian ruble or the Iranian rial. The potential cryptocurrency would function in a particular financial zone in Astrakhan, the place Russia began to simply accept Iranian cargo shipments, the report notes.

Russian lawmaker Anton Tkachev, a member of the Committee on Data Coverage, Data Expertise and Communications, pressured {that a} joint stablecoin challenge would solely be attainable as soon as the digital asset market is totally regulated in Russia. After a number of delays, the Russian decrease home of parliament as soon as once more promised to start out regulating crypto transactions in 2023.

Iran and Russia are among the many nations that banned their residents from using cryptocurrencies like Bitcoin (BTC) and stablecoins like Tether (USDT) for funds. On the identical time, each Iran and Russia have been actively working to undertake crypto as a instrument of international commerce.

Associated: Russia to begin work on CBDC settlement system as sanctions endure

In August 2022, Iran’s Business, Mines and Commerce Ministry approved the use of cryptocurrency for imports into the nation amid ongoing worldwide commerce sanctions. The native authorities stated that the brand new measures will assist Iran mitigate world commerce sanctions. Iran subsequently placed its first international import order utilizing $10 million value of crypto.

The Financial institution of Russia — which has been traditionally against the thought of utilizing crypto as a cost technique — agreed to allow crypto in foreign trade resulting from sanctions as properly. The regulator has by no means clarified what cryptocurrency can be used for such transactions although.