Russia and Iran to team up to issue gold-linked stablecoin

Amid the changing global geopolitical situation, Iran and Russia are considering jointly issuing a gold-backed stablecoin on the market.

Russian news agency Vedomosti described the stablecoin as a “symbol of the Persian Gulf region” and will serve as a method of payment for foreign trade.

The two countries plan to use the stablecoin to enable cross-border transactions instead of using fiat currencies such as the U.S. dollar, Iranian rupee or Russian ruble.

Additionally, reports indicate that specific stablecoins will be used to operate in Astrakhan’s special economic zone. This is also where Russia started accepting Iranian goods.

Anton Tkachev, a Russian lawmaker and member of the Information Policy Committee, pointed out that the joint stablecoin project will be possible only after Russia fully regulates the digital asset market.

Russian lawmakers have repeatedly delayed in regulating the Crypto market. However, Russia’s lower house of parliament once again promised to start regulating Crypto transactions in 2023.

Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, said:

"I can assure everyone that next year we will definitely introduce Crypto as a legal product, there will definitely be legislation... I can only say clearly that it cannot be used as a means of payment for internal settlements in the Russian Federation."

Both Iran and Russia have banned their local residents from using cryptocurrencies such as Bitcoin (BTC) and other U.S. dollar-backed stablecoins such as Tether (USDT).

On the other hand, both countries are actively seeking to use Crypto to bypass international sanctions and use it as a tool for foreign trade.

In August 2022, Iran’s Ministry of Industry, Mining and Trade approved the use of digital assets for import. The local government pointed out that the new measures will help Iran ease global trade sanctions.

Russian banks have historically opposed the use of digital assets as a payment method. However, they agreed to use Crypto in foreign trade to mitigate the impact of global sanctions.