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Iran and Russia want to issue new stablecoin backed by gold

The Central Financial institution of Iran is reportedly cooperating with the Russian authorities to collectively challenge a brand new cryptocurrency backed by gold.

According to the Russian information company Vedomosti, Iran is working with Russia to create a “token of the Persian Gulf area” that may function a cost methodology in international commerce.

The token is projected to be issued within the type of a stablecoin backed by gold, in response to Alexander Brazhnikov, govt director of the Russian Affiliation of Crypto Business and Blockchain.

The stablecoin goals to allow cross-border transactions as a substitute of fiat currencies like the USA greenback, the Russian ruble or the Iranian rial. The report notes that the potential cryptocurrency would function in a particular financial zone in Astrakhan, the place Russia began to simply accept Iranian cargo shipments.

Russian lawmaker Anton Tkachev, a member of the Committee on Info Coverage, Info Expertise and Communications, careworn {that a} joint stablecoin undertaking would solely be attainable as soon as the digital asset market is totally regulated in Russia. After a number of delays, the Russian decrease home of parliament as soon as once more promised to start out regulating crypto transactions in 2023.

Iran and Russia are among the many international locations that banned their residents from utilizing cryptocurrencies like Bitcoin (BTC) and stablecoins like Tether (USDT) for funds. On the similar time, Iran and Russia have been actively working to undertake crypto as a device of international commerce.

Associated: Russia to start work on CBDC settlement system as sanctions endure

In August 2022, Iran’s Business, Mines and Commerce Ministry authorised using cryptocurrency for imports into the nation amid ongoing worldwide commerce sanctions. The native authorities mentioned the brand new measures would assist Iran mitigate international commerce sanctions. Iran subsequently positioned its first worldwide import order utilizing $10 million price of crypto.

The Financial institution of Russia — traditionally against utilizing crypto as a cost methodology — agreed to permit crypto in international commerce to mitigate the affect of worldwide sanctions. The regulator has by no means clarified which cryptocurrencies can be used for such transactions although.

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