The Russian government and the Central Bank of Iran are reportedly considering a partnership to create a new stablecoin that can facilitate cross-border settlements.
The token will be pegged to the valuation of gold.
The Mutual Operation
According to a report by Russian media outlet Vedomosti, local authorities may collaborate with Iran’s central bank to launch a new crypto asset called “the Persian Gulf region token”.
Assuming it sees the light of day, it will replace fiat currencies such as the dollar, euro, ruble and others in foreign trade transactions. Alexander Brazhnikov – executive director of the Russian Cryptography and Blockchain Industry Association – said the coin will be backed by gold and will be used in a special economic zone in Astrakhan.
The two nations have recently sign a contract to facilitate trade through a transport system in the Caspian Sea, with the northern tip of the network being the Russian city of Astrakhan.
Anton Tkachev – a member of the Duma Committee on Information Policy – confirmed the rumors about the creation of the new stablecoin. However, he clarified that such a move could only be actively discussed when the Russian government implements a proper regulatory framework on its local crypto sector.
Anatoly Aksakov – Chairman of the State Duma Committee on Financial Markets – declared end of 2022 that the authorities will apply these rules by the end of 2023:
“I can assure everyone that we will definitely have crypto as a legal product next year, there will definitely be legislation…I can only say unequivocally that it cannot be used in the Russian Federation as means of payment for internal regulations.”
Iran and Russia share similar views on crypto
Russia, especially its central bank, hasn’t displayed the friendliest stance on the digital asset industry. He offers a total ban on all crypto attempts, but the Ministry of Finance later softened the tone of “fair” by-laws.
Lawmakers have been trying for months to establish a “national” cryptocurrency platform based on the standards of the Moscow exchange. As CryptoPotato reported in November, the authorities also discussed it with market participants and are now awaiting approval from the Ministry of Finance and the Bank of Russia.
Bitcoin mining is an area Russia wants to focus on. President Vladimir Putin said last year that he sees potential in it:
“Although, of course, we also have certain competitive advantages here, especially in what is called mining. I mean the surplus of electricity and the well-trained personnel available in the country.
The Central Bank of the Islamic Republic of Iran has also been quite negative towards crypto, banning domestic banks and financial institutions from dealing with it in 2018. The government declared war on illicit bitcoin miners while suspending even legal operators to preserve the stability of the national power system.
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