Russia and Iran Plan To Issue New Stablecoin Backed By Gold

January 16, 2023 5:07 pm Comments

The days of the petrodollar could be coming to an end…

Iran and Russia are reportedly collaborating to launch a gold-backed stablecoin as a payment method for foreign trade.

This cryptocurrency would be issued in the form of a digital token, and would be used as an alternative to existing fiat currencies like the US dollar, and the Russian ruble.

The launch of the coin is dependent upon Russian authorities regulating the digital asset market, which is scheduled to happen in 2023.


Coin Telegraph had these details to add:

The Central Bank of Iran is reportedly cooperating with the Russian government to jointly issue a new cryptocurrency backed by gold.

According to the Russian news agency Vedomosti, Iran is working with Russia to create a “token of the Persian Gulf region” that would serve as a payment method in foreign trade.

The token is projected to be issued in the form of a stablecoin backed by gold, according to Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain.

The stablecoin aims to enable cross-border transactions instead of fiat currencies like the United States dollar, the Russian ruble or the Iranian rial. The report notes that the potential cryptocurrency would operate in a special economic zone in Astrakhan, where Russia started to accept Iranian cargo shipments.

Russian lawmaker Anton Tkachev, a member of the Committee on Information Policy, Information Technology and Communications, stressed that a joint stablecoin project would only be possible once the digital asset market is fully regulated in Russia. After multiple delays, the Russian lower house of parliament once again promised to start regulating crypto transactions in 2023.

Finbold had these details to add:

In light of the advancements in digital assets and the pressures exerted on states, Russia and Iran are now exploring the development of a joint stablecoin that would be backed by gold.

The executive director of the Russian Association of the crypto industry and blockchain, Alexander Brazhnikov, revealed that the Central Bank of Iran is considering the creation of a stablecoin with the Russian Federation as a means of payment in transactions involving international trade, according to the local Russian news outlet Vedomosti.

Brazhnikov said that the coin’s value would be tied to gold (i.e., a stablecoin). Astrakhan is a free-trade zone where Russia has started accepting Iranian merchandise; therefore, the coin would be usable there.

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