Create a stablecoin backed by physical gold, tradable even in the face of economic sanctions. This is the project of Russia and Iran, both of which are limited by the international community. What could this resource be like?
A Russian and Iranian stablecoin to counter the sanctions
The news was reported by the Russian media Vedomosti. Both countries want to be able to trade in an asset other than the dollar, the Iranian rial or the Russian ruble, in order to better able to evade international sanctions. It is the Central Bank of Iran that has communicated on this project, which is presented as “a sign from the Persian region“.
Negotiations are ongoing, according to Anton Tchakev, a member of the Duma in charge of working on digital issues. With one caveat for now: Russia will only confirm the creation of this asset when the issue of regulating cryptocurrencies will be established in its territory. As a reminder, Deputy Finance Minister Alexei Moiseev had already raised the possibility of using stablecoins with Russia’s allies last September.
This stablecoin will be backed by gold, such as PAX Gold, the largest asset of its kind, currently worth $513 million. The interest is obviously that it will not be based on a sanctioned fiat currency, such as the dollar. Gold’s safe-haven status is also one of the reasons it would be chosen.
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Iran and Russia are playing a balancing act
As a reminder, both Iran and Russia have banned cryptocurrency payments in their respective nations. Their governments aren’t particularly keen on letting part of the economy slip by… But they want to anyway exploit the technology behind crypto assets.
We recall that last August Iran confirmed that it would now use cryptocurrencies for its imports. Same story from Russia, which announced in September that it was working on a bill on the matter cross-border cryptocurrency payments. In these two countries, the catastrophic declines of their respective fiat currencies have also led to a marked adoption by the population, in order to counter the deleterious effects on their economies.
This placement not unlike that of China, which is also particularly firm on its population and cryptocurrencies, while using the technologies themselves. This therefore shows that even in territories where populations are kept away from cryptocurrencies, they are considered effective enough to be used by governments.
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Source: Vedomosti
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Cryptoast reporter, I fell into the cryptocurrency pot a few years ago. I am passionate about the innovative technologies that come with the blockchain and I like to find the sharpest information to share with you.
Marine Debelloir
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