Create a stablecoin backed by physical gold, which is tradable even in the face of economic sanctions. This is the project of Russia and Iran, both of which are restricted by the international community. What might this asset look like?
A Russian and Iranian stablecoin to counter sanctions
The news was reported by Russian media Vedomosti. Both countries want to be able to transact in an asset other than the dollar, the Iranian rial or the Russian rouble, in order to better able to evade international sanctions. It is the Central Bank of Iran which communicated on this project, which is presented as “a token from the Persian region“.
Negotiations are ongoing, according to Anton Tchakev, a member of the Duma responsible for working on digital issues. With one caveat for now: Russia will only confirm the creation of this asset when the issue of cryptocurrency regulation will be settled 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, like PAX Gold, the largest such asset, which is currently worth $513 million. The interest is of course that it will not be based on a sanction-prone 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 are not particularly keen on letting part of the economy slip away from them… But they still want capitalize on the technology that underpins crypto assets.
We remember that last August, Iran had confirmed that it would now use cryptocurrencies for its imports. Same story on the side of Russia, which announced in September that it was working on a bill concerning cross-border cryptocurrency payments. In these two countries, the catastrophic falls of the respective fiat currencies have also led to a marked adoption of the population, in order to counter the deleterious effects on their economies.
This positioning not unlike that of China, which is also particularly firm on its population and cryptocurrencies, while using technologies itself. This therefore shows that even in territories where populations are kept away from cryptocurrencies, these are considered effective enough to be used by governments.
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Source: Vedomosti
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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