It appears that the Central Bank of Iran is cooperating with the Russian government to jointly issue a new gold-backed cryptocurrency.
According to the Russian news agency Vedomosti, Iran is working with Russia to create a “Persian Gulf region token” that would serve as a method of payment in foreign trade.
The token is expected to be issued in the form of a gold-backed stablecoin, according to Alexander Brazhnikov, executive director of the Russian Blockchain and Crypto Industry Association.
The stablecoin is intended to allow cross-border transactions in lieu of fiat currencies such as the US dollar, Russian ruble, or Iranian rial. The report notes that the potential cryptocurrency would operate in a special economic zone in Astrakhan, where Russia began accepting Iranian cargo shipments.
Russian lawmaker Anton Tkachev, a member of the Information Policy, Information Technology and Communications Committee, stressed that a joint stablecoin project would only be possible once the digital asset market is fully regulated in Russia. After multiple delays, the Lower House of the Russian Parliament once again promised to start regulating crypto transactions in 2023.
Iran and Russia are among the countries that have banned their residents from using cryptocurrencies like Bitcoin (BTC) and stablecoins like Tether (USDT) for payments. At the same time, Iran and Russia have been actively working to adopt cryptocurrencies as a foreign trade tool.
In August 2022, Iran’s Ministry of Industry, Mines and Commerce has approved the use of cryptocurrencies for imports into the country amid ongoing international trade sanctions. The local government claimed the new measures would help Iran ease global trade sanctions. Subsequently, Iran placed its first international import order using cryptocurrencies worth USD 10 million.
The Bank of Russia, which has historically opposed the use of cryptocurrencies as a payment method, has agreed to allow the use of cryptocurrencies in foreign trade to mitigate the impact of international sanctions. However, the regulator has never clarified which cryptocurrencies would be used for such transactions.
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