Iranian central bank is reportedly collaborating with the government of Russia to mutually launch a unique crypto supported by gold. The authorities in Iran are operating to develop a crypto token to be circulated across the Persian Gulf zone.
The respective token would play the role of a method of payment for Iran’s trade with foreign countries, as reported by Vedomosti (a Russian news agency).
Iran and Russia Join to Release an Exclusive Gold-Backed Stablecoin for International Trade
The token will reportedly be a stablecoin that would be supported by gold. This was mentioned by Alexander Brazhnikov (the person who is known as the executive director of the Russian Association of Crypto Industry and Blockchain).
The purpose of launching the stablecoin is to permit transfers across borders rather than fight currencies such as the US dollar, the Iranian rial, or the Russian ruble.
The likely crypto asset would run in a specific economic area within Astrakhan. That is the place where Russia began accepting cargo shipments from Iran, as noted in the report.
Anton Tkachev, a Russian policymaker who is also a participant of the Committee on Information Policy, Information Technology and Communications, commented on the move. In Tkachev’s words, Russia should regulate the country’s crypto market.
As per the lawmaker, the mutual stablecoin program would just be conceivable if the Russian market of digital assets gets completely regulated. Following several delays, the Parliament’s lower house in Russia once again took a pledge to make the regulation of crypto transfers in 2023.
Russia and Iran are considered among the nations that prohibited this citizen from paying with Bitcoin and other cryptocurrencies including Tether (USDT) and other stablecoins.
Simultaneously, both countries have been enthusiastically operating on utilizing crypto as an instrument to carry out trade with foreign jurisdictions. Back in 2022’s August, the Industry, Mines and Trade Ministry of Iran authorized using crypto assets for imports to its jurisdiction during the international trade prohibitions.
The local authorities of the country stated that the latest measures will assist Iran in eliminating the worldwide trade sanctions.
Sanctions-Stricken Countries Explore Crypto Space to Manage Their Economic Status
As a result of this, Iran carried out its initial international import demand with the use of $10M worth of cryptocurrency. The Russian central bank had formerly been opposing the concept of utilizing crypto for payments.
Nonetheless, at present, it has agreed to permit crypto payments because of the western sanctions leveled against the country. However, the regulatory agency has not confirmed the specific crypto assets to be utilized for such transfers.
The central Bank of the country currently does not support the crypto assets’ use. Ethereum (ETH), Bitcoin (BTC), or other such cryptocurrencies are presently not permitted by the organization as a medium for payments within the jurisdiction of Russia.
On the contrary, the bank has permitted the use of crypto assets to perform business dealings. International trade also comes in the category of such dealings.
It is noteworthy that Russia is engaged in completely invading its neighboring country Ukraine. Keeping in view the respective scenario, the European Union authorities made a plan to stop the country from doing so.
Consequently, they implemented a prohibition on European companies from providing any services or products that are associated with crypto assets to the people living in Russian jurisdiction.