Russia may issue a gold-backed stablecoin for use in international deals, a senior member of the Russian parliament has admitted. The matter was discussed during a recent visit to Iran, where officials also showed interest in such an initiative.
Iran and Russia discuss stablecoin payments for bilateral trade deals
The Russian Federation is considering the creation of a stablecoins backed by gold that can be used for cross-border deals, including with Iran, the chairman of the Financial Market Committee of the Russian parliament’s lower house, Anatoly Aksakov, told the Parlamentskaya Gazeta newspaper.
“We discussed the issuance of stablecoins, digital financial assets (DFAs) backed by certain securities. For example, I spoke about gold, gold bars, refineries can provide them, or the centers where gold is stored, and DFA is issued against these reserves,” explained the legislator after a visit by a Russian delegation to the Republic. Islamic.
Said stablecoin can be used as a means of payment, in mutual agreements between Russia and Iran, for example, explained Aksakov, also quoted by the Interfax news agency. He added that the proposal has been received with interest from the Iranian side.
The high-ranking member of the State Duma further noted that Iran has a large debt for goods supplied by Russia. At the same time, the Iranian currency, the rial, fluctuates significantly and has two exchange rates against the US dollar: the official one, approved by the Central Bank of Iran, and the market exchange rate, which is inconvenient in terms of calculations for Russian exports. .
News that Tehran and Moscow are discussing the possible launch of a gold-backed digital currency broke in early January when the head of the Russian crypto industry association told the Vedomosti business daily that Iran’s central bank is considering develop one with Russian participation. The token would be used to facilitate trade in the Persian region, the executive revealed.
Gold-backed Russian digital currency first proposed in 2019
The idea of issuing a Russian gold-backed stablecoin was initially circulated in May 2019, during a State Duma meeting joined by Bank of Russia Governor Elvira Nabiullina. At the time, chamber member Vladimir Gutenev suggested that the central bank should start talks on the issue with the other BRICS countries, insisting:
Gold is the least vulnerable asset. We could probably find understanding in China, India and Brazil.
“But these are not cryptocurrencies, maybe so-called stablecoins,” commented Anatoly Aksakov, while Nabiullina indicated that the monetary authority is open to a real asset-backed stablecoin. A proposal for a ‘golden ruble’ stablecoin was also presented in a report by the VEB.RF Research and Experience Institute published in the summer of 2022.
Pressured by Western sanctions, Russia and Iran have also been exploring options to use decentralized cryptocurrencies to circumvent restrictions on foreign trade. In August last year, Iran placed its first official import order using cryptocurrency, while Russia is taking steps to legalize cross-border crypto payments. A digital ruble and a crypto rial that are not backed by gold are also being developed.
Do you think Russia will issue a gold-backed stablecoin in the near future? Share your expectations in the comments section below.
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