Tehran and Moscow are discussing the possibility of launching a stable coin for international payments, the Russian press revealed. But in order to mint a gold-backed currency, authorities would first need to regulate crypto assets, a lawmaker noted.
Russian and Iranian representatives speak of using gold-backed stable coins in foreign trade
According to a report citing representatives of crypto industry organizations in the Russian Federation, Iran’s central bank, with Russian participation, is considering the possibility of creating digital tokens to facilitate trade in the Persian region.
Alexander Vladnikov, executive director of the Russian Association for Crypto Economy, Artificial Intelligence and Blockchain (Racib), elaborated with the business daily Vedomosti that the coins could be accepted as a means of payment in international payments.
It is envisaged that the token will be backed by gold, which would make it a stable coin.
Stablecoins are cryptocurrencies, whose value is usually pegged to state-issued fiat money or precious metals. Russian authorities have postponed adopting comprehensive regulations for bitcoin and other cryptocurrencies, with the Bank of Russia opposing legalization in the country, but a proposal to allow the use of gold-backed stablecoins was floated last year.
Cryptocurrencies Must First Be Regulated, Russian MP Says
PAX Gold, the largest digital coin backed by physical gold according to its issuer, currently ranks 74th in market capitalization, with a market cap of over $511,000,000. It is an ERC20 token based on the Ethereum blockchain.
News of the negotiations was confirmed by Anton Tkachev, a member of the Committee for Information Policy, Information Technology and Telecommunications of the State Duma, the lower house of the Russian parliament. However, he remarked that the issue would be actively discussed at the state level only after cryptocurrencies are fully regulated.
Russia and Iran, both under Western economic and financial sanctions, have turned to crypto assets as a means of circumventing restrictions; in August, Iran placed its first official import order using cryptocurrencies, and Russia is considering legalizing cross-border crypto payments. Both countries are also developing central bank digital currencies (CBDC), digital rubles, and crypto reals.
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