Russia and Iran want to launch a gold-backed stablecoin

The Russian Vedomosti news agency has revealed in an article that Russia and Iran are gearing up to launch a new gold-backed stablecoin.

This new stablecoin would be used for cross-border transactions instead of USD and other fiat currencies, and it would first  operate in a special economic zone in Astrakhan, where Russia is accepting cargo shipments from Iran. Iran is exploring new alternative methods of conducting foreign trade in the context of ongoing international trade sanctions against the country. 

In order to try and minimise the effects of these sanctions, the Iranian Industry, Mines, and Trade Ministry approved the use of cryptocurrency for imports into the country in August 2022. Back then, Iran had made its first official import order using cryptocurrency and took a step towards allowing the country to trade through digital assets that bypass the dollar-dominated global financial system.  

The US imposes an almost total economic embargo on Iran, including a ban on all imports including those from the country's oil, banking, and shipping sectors.

Russia’s efforts to use crypto for foreign trade

According to Russian lawmakers cited by cryptodaily.co.uk, a joint stablecoin project involving Russia and Iran would only be possible following a complete regulation of the digital asset market in Russia. The Russian lower house of parliament revealed that it would start regulating crypto transactions in 2023. 

In September 2022, the Bank of Russia has admitted that cross-border payments in crypto are inevitable in the current geopolitical conditions. Deputy finance minister Alexei Moiseev said in an interview with Russia-24 TV channel that the Bank of Russia and the finance ministry expect to legitimise cross-border payments in the near future. 

Moiseev outlined the importance of enabling local crypto services in Russia, noting that many Russians rely on foreign platforms to open a crypto wallet. He said that the necessity for doing it in Russia comes from the assurance that the involved entities will be supervised by the central bank, being therefore obliged to comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations. 

In October 2022, a representative of Russia’s Ministry of Finance has stated the country is looking for a non-restrictive policy for using Bitcoin and other cryptocurrencies in international trade. The Ministry of Finance of the Russian Federation planned to let any industry in the country accept Bitcoin and cryptocurrencies for international trade without restriction, according to a report from local media outlet TASS. 

The representative revealed that the central bank is in favour of creating a full-fledged infrastructure for the circulation of digital currencies in Russia. While the Ministry of Finance prefers a local approach to the regulation of digital assets, the central bank is looking for a broader range of regulatory action.