The Central Bank of Iran is reportedly working with the Russian government to develop a new gold-backed cryptocurrency to facilitate international commerce.
According to Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain, the token would likely be launched as a stablecoin backed by gold.
Instead of national currencies like the US dollar, Russian ruble, or Iranian rial, the stablecoin will facilitate international trade. Specifically, the proposed cryptocurrency would function in a special economic zone in Astrakhan, where Russia has begun to permit Iranian cargo exports.
stablecoin backed by Gold. pic.twitter.com/zu7CLd1FDT
— SGX Nifty (@sgxnifty_live) January 16, 2023
A shared stablecoin project, according to Russian politician Anton Tkachev, a member of the Committee on Information Policy, Information Technology, and Communications, is only possible once the digital asset market in Russia is completely regulated. Russian lawmakers have repeatedly vowed to begin handling cryptocurrency transactions in 2023, but that date keeps getting pushed back.
Countries like Iran and Russia have made it illegal for citizens to buy, sell, or transfer any money involving cryptocurrencies such as Bitcoin or stable currency like Tether (USDT). Simultaneously, Iran and Russia have been pushing for the widespread use of cryptocurrency in international trade.
Despite ongoing international trade restrictions, Iran’s Ministry of Industry, Mines, and Trade allowed the usage of cryptocurrencies for imports into the country in August 2022. Local authorities said the new policies would help Iran comply with international trade restrictions. Iran then used $10 million worth of cryptocurrency to make its first-ever order for imports from abroad.
Even though it has been traditionally opposed to crypto, the Bank of Russia has now consented to accept crypto payments for international trade. However, the regulator has yet to specify which cryptocurrency to use for such dealings.