- As per reports, the central bank of Iran will be collaborating with the Russian government to jointly issue a new cryptocurrency.
- The new stablecoin will be backed by Gold.
Vedomosti, the Russian news agency reported that Iran is willing to collaborate with Russia to make a “token of the Persian Gulf region” that will be used to make payments in foreign trade.
The stablecoin will be backed by Gold, as per Alexander Brazhnikov, the executive director of the Russia Association of Crypto Industry and Blockchain.
The aim of introducing this stablecoin is to replace fiat currencies used to conduct cross-border transactions. The report suggests that the potential crypto will function in a special economic zone in Astrakhan, where Russia receives Iranian cargo shipments.
Anton Tkachev, a policy maker and a member of the Committee on Information Policy, Information Technology and Communications from Russia, highlighted that a combined stablecoin project will only be implemented when the digital asset market is completely circulated in Russia. The Russian lower house has promised to regulate cryptocurrency transactions after several delays.
Iran and Russia have prohibited their citizens from using cryptocurrencies such as bitcoin and stablecoins such as Tether for making payments. While it is ironic that Iran and Russia rely on cryptocurrency to facilitate foreign trade because of international sanctions, they are developing Central Bank Developing Currencies (CBDCs).
In August last year, the Mines and Trade Ministry of Iran started accepting payments in cryptocurrency for imports when several nations sanctioned Iran. Cryptocurrency has helped Iran mitigate the effects of global trade sanctions. Iran’s first international import order that was paid in crypto was valued at $10 million.
Initially, the Bank of Russia was not in favor of accepting crypto as a payment method but then it permitted crypto in foreign trade under pressure from international sanctions. Also, the regulator has not made it clear which cryptocurrencies will be utilized for trade payments.
Source: https://www.thecoinrepublic.com/2023/01/17/iran-and-russia-to-collaborate-to-issue-stablecoin-backed-by-gold/