Iran and Russia want to issue a new stablecoin backed by gold

By Sharan Kaur Phillora

According to reports, Russia and Iran are collaborating to launch a cryptocurrency backed by gold, with the idea that the “stablecoin” could replace the US dollar in international trade.

Here’s what we know:

On January 16, the Russian news agency Vedomosti reported that the two sanctioned nations intend to issue a “token of the Persian region” for international transactions. The intention is to launch it in a special economic enclave in the southern Russian city of Astrakhan, which handles Iranian shipments. 

Typically, these payments are made in government-issued currencies like the US dollar, Russian ruble, and Iranian rial.

In recent months, Russia and Iran have accelerated their efforts to “de-dollarize” or move away from using the US dollar in trade, according to the Jamestown Foundation. Instead, they intend to increase their annual trade volume to $10 billion through measures such as developing an alternative to SWIFT, which they are prohibited from using.

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. A

In September, the Bank of Russia accepted the need to legalize crypto for international payments to soften the impact of financial sanctions but has yet to clarify its plans.

And in August 2022, Iran’s Industry, Mines and Trade Ministry approved the use of cryptocurrency for imports into the country amid ongoing international trade sanctions. The local government said the new measures would help Iran mitigate global trade sanctions. Iran subsequently placed its first international import order using $10 million worth of crypto.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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