Russian media company Knowledge has reported that the Russian government is seeking cooperation with the Central Bank of Iran to launch a new crypto asset called “the mark of the Persian Gulf region.” It is most likely one stablecoins and is backed by gold, according to the latest news from the authorities of both countries.
Provided it sees the light of day, it will replace fiat currencies like the dollar, euro, ruble and others in foreign trade. Alexander Brazhnikov — executive director of the Russian Association of the Crypto Industry and Blockchain — said the coin will be gold-backed and deployed in a special economic zone in Astrakhan.
Stablecoins are cryptocurrencies in which the price is linked to a reference value.
To scrap transactions in fiat currencies like the US dollar and euro, Russia’s Deputy Finance Minister Alexey Moiseyev said it is working with a number of countries to issue a new cryptocurrency backed by gold.
“We offer mutually acceptable tokenized instruments to be used on these platforms, which are essentially clearing platforms that we are currently developing with these countries. Stablecoins can be tied to a widely accepted instrument, such as gold, whose value is clear and observable for all participants.” said Moiseyev.
The Ministry of Finance and the Bank of Russia have agreed that under the current conditions “It is impossible to do without cross-border settlements in cryptocurrency.”
The Ministry of Finance hopes to resolve issues related to cross-border payments in cryptocurrencies during the fall session of the State Duma, the lower house of parliament.
The two nations recently signed a treaty 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 specified that such a move can only be actively discussed if the Russian government implements an adequate regulatory framework for its local crypto sector.
Anatoly Aksakov – Chairman of the State Duma Committee on Financial Markets – stated at the end of 2022 that the authorities will apply such rules until the end of 2023:
“I can assure everyone that next year we will definitely have crypto as a legal product, there will definitely be legislation… I can only say unequivocally that it cannot be used as a means of payment for internal settlements in the Russian Federation.”
Russia, particularly its central bank, hasn’t shown the friendliest attitude toward the digital asset industry. It proposed a total ban on all crypto efforts, but the Treasury later softened the tone on implementing regulations.
Lawmakers have been trying for months to establish a “national” cryptocurrency platform based on Moscow Exchange standards. As CryptoPotato reported in November, the authorities have also discussed this with market participants and are now awaiting approval from the Ministry of Finance and the Bank of Russia.
One area Russia wants to focus on is bitcoin mining. President Vladimir Putin said last year that he sees potential in this:
“Of course, we also have certain competitive advantages here, especially in so-called mining. I mean the surplus of electricity and the well-trained staff that is 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 trading with it in 2018. The government declared war on illegal bitcoin miners and even paused legal operators to keep bitcoin stable on the national power grid
Iran and Russia are among the countries that have banned their residents from using cryptocurrencies like Bitcoin, Ethereum, etc. and stablecoins like Tether (USDT) for payments. At the same time, Iran and Russia have been actively working to adopt crypto as a tool of foreign trade.
In August 2022, Iran’s Ministry of Industry, Mines and Trade approved the use of cryptocurrency for imports into the country.
The country then placed its first international import order of crypto worth $10 million.
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