According to a report by a Russian news agency called Vedomosti, Iran and Russia are collaborating on the development of a “token of the Persian Gulf region” that would be used as a mode of payment in international commerce.
Alexander Brazhnikov, the executive director of the Russian Association of Crypto Industry and Blockchain, said that the token would likely be released in the form of a stablecoin that is backed by gold. This information comes from Brazhnikov.
Instead of using fiat currencies such as the United States dollar, the Russian ruble, or the Iranian rial, the stablecoin hopes to make it possible to do business across national borders. According to the article, the proposed cryptocurrency would run out of a special economic zone in Astrakhan, which is the same region where Russia began to permit Iranian cargo exports.
Anton Tkachev, a member of the Committee on Information Policy, Information Technology and Communications in the Russian legislature, stressed that an unified stablecoin initiative would not be viable until the digital asset market in Russia is completely regulated. Following a number of setbacks, the lower house of the Russian parliament has once again committed to begin regulating cryptocurrency transactions in the year 2023.
The use of cryptocurrencies such as Bitcoin (BTC) and stablecoins such as Tether (USDT) for payments has been made illegal in a number of countries, including Iran and Russia. At the same time, Russia and Iran have been making concerted efforts to include cryptocurrency as a method of doing international business.
In the midst of continuous international trade restrictions, Iran’s Ministry of Industry, Mines, and Trade gave its blessing in August 2022 to the use of cryptocurrencies as a form of payment for imports entering the country. According to the local authorities, the new measures will assist Iran in minimising the effects of global trade sanctions. Following that, Iran made its first order for foreign imports using cryptocurrencies valued at a total of ten million dollars.
Despite its longstanding opposition to the use of cryptocurrencies as a form of payment, the Bank of Russia has now indicated that it would permit the use of cryptocurrencies in international commerce in order to lessen the effect of international sanctions. However, the authority has not provided any clarification about which cryptocurrencies will be used for these types of transactions.
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