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Russia and Iran explore launch of joint cryptocurrency backed by gold

Russia and Iran explore launch of joint cryptocurrency backed by gold

In light of the advancements in digital assets and the pressures exerted on states, Russia and Iran are now exploring the development of a joint stablecoin that would be backed by gold.

The executive director of the Russian Association of the crypto industry and blockchain, Alexander Brazhnikov, revealed that the Central Bank of Iran is considering the creation of a stablecoin with the Russian Federation as a means of payment in transactions involving international trade, according to the local Russian news outlet Vedomosti.

Brazhnikov said that the coin’s value would be tied to gold (i.e., a stablecoin). Astrakhan is a free-trade zone where Russia has started accepting Iranian merchandise; therefore, the coin would be usable there. 

Stablecoin is to be discussed at the state level

Anton Tkachev, a member of the Duma and the Committee on Information Policy, Information Technology, and Communications, acknowledged the discussions’ existence. After cryptos are completely regulated in Russia, which should happen in 2023, Tkachev said the issue would be considered at the governmental level.

The Russian Central Bank does not support the usage of cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH)  as a method of payment anywhere inside the nation. On the other hand, it allows for the usage of cryptocurrencies in business dealings, including international trade. 

Notably, following Russia’s full-scale invasion of Ukraine, the authorities of the European Union enacted a ban prohibiting European firms from offering any services linked to cryptocurrencies to residents of Russia.

Interestingly, in August 2022, Iran made the first-ever import of goods using cryptocurrency worth millions.

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