Russia and Iran Reportedly Collaborating To Develop New Stablecoin

• The value of the token will be tied to that of gold.
• The currency will be initially used in a special economic zone in Astrakhan.

According to reports, the Russian government and the Central Bank of Iran are discussing the possibility of forming a collaboration to develop a new stablecoin that may simplify cross-border transactions. The value of the token will be tied to that of gold.

Vedomosti, a Russian news site, claims that officials in the Persian Gulf area are considering working with Iran’s central bank to introduce a new cryptocurrency they are calling “the token of the Persian Gulf region.”

Avoiding Sanctions Through Crypto

If it ever comes to fruition. It will possibly replace national currencies like the dollar, euro, ruble, and others in international commerce. Both Russia and Iran face sanctions from the U.S. The currency will be initially used in a special economic zone in Astrakhan. According to Alexander Brazhnikov, executive director of the Russian Association of the Crypto Industry and Blockchain.

With the Russian city of Astrakhan serving as the network’s northern hub. The two countries have just inked a pact to ease commerce through a transportation system in the Caspian Sea.

Duma Committee on Information Policy member Anton Tkachev has verified the speculations about the new stablecoin’s development. But he stressed that such a step could be actively debated only after the Russian government had established a suitable legal framework for the country’s domestic crypto industry.

At the end of 2022, Anatoly Aksakov, chairman of the State Duma Committee on the Financial Markets, said that the government will implement these regulations by the end of 2023. Russia’s posture toward the crypto sector, especially from the country’s central bank, has not been the most welcoming. The Finance Ministry first suggested a complete ban on all crypto projects. But eventually revised its stance to simply imposing restrictions.