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Tehran and Moscow are discussing the possible launch of a stablecoin for international settlements, Russian press has revealed. However, to mint gold-backed currency, authorities would first have to regulate crypto assets, one lawmaker noted.

Russian and Iranian Representatives Discuss Use of Gold-Backed Stablecoin in Foreign Trade

Iran’s central bank is considering the possibility of creating, with Russian participation, a digital token to facilitate trade in the Persian region, according to a report quoting the head of the organization of the crypto industry in the Russian Federation .

The coin could be accepted as a means of payment in international settlements, Executive Director of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), Alexander Brazhnikov, told business daily Vedomosti and detailed:

It is assumed that the token will be backed by gold, it would be a stablecoin.

Stablecoins are cryptocurrencies, the value of which is usually pegged to fiat currencies or state-issued precious metals. While the Russian authorities have been report the adoption of comprehensive regulations for bitcoin and others, with the Bank of Russia opposite their legalization in the country, a proposal to authorize the use of gold-backed stablecoins was released last year.

Cryptocurrencies should be regulated first, says member of Russian parliament

The largest physical gold-backed digital coin according to issuer, PAX Gold, currently ranks 74th by market capitalization, with a market cap of over $511,000,000. It is an ERC20 token based on the Ethereum blockchain.

News of the negotiations was confirmed by Anton Tkachev, a member of the Information Policy, Information Technology and Communications Committee of the State Duma, the lower house of the Russian parliament. However, he noted that the matter would only be actively discussed at the state level once cryptocurrencies are fully regulated.

Russia and Iran, both under Western economic and financial sanctions, have turned to crypto-assets as a means of circumventing restrictions. In August, Iran put its first official import order using cryptocurrency as Russia plans to legalize cross-border crypto payments. Both nations are also developing central bank digital currencies (CBDC), them digital ruble and the riyal crypto.

Keywords in this story

CBDC, PIECE OF MONEY, Crypto, crypto payments, Cryptocurrencies, Cryptocurrency, digital coin, digital currency, Digital token, trade, gold, golden back, international regulations, Iran, Iranian, Russia, Russian, Stablecoin, Token, Trade

Do you think Iran and Russia will eventually issue a gold-backed stablecoin? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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