Iran and Russia Collaborate on a Gold-Backed Stablecoin

Iran's Central Bank is apparently working together with the Russian government to launch a new digital currency that will be supported by gold.

It has been reported that Iran is collaborating with Russia to develop a digital currency known as the 'token of the Persian Gulf region' that could be used for payments in international transactions.

Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain, reported that the token is predicted to be released as a stablecoin that is supported by gold.

The stablecoin seeks to facilitate international payments, as opposed to using fiat currencies like the US dollar, the Russian ruble, or the Iranian rial. It was mentioned in the report that this possible digital currency would be put to use in the particular economic zone of Astrakhan, where the Russians began to accept Iranian shipment deliveries.

Anton Tkachev, a member of the Russian legislative body's Committee on Information Policy, Information Technology and Communications, emphasized that cooperation on a steady stablecoin project will only be feasible once the cryptocurrency market is effectively regulated in the country. After several hiatuses, the lower house of the Russian parliament reiterated their pledge to begin administering crypto transactions by 2023.

Iran and Russia have forbidden their citizens to utilize cryptocurrencies such as Bitcoin and stablecoins like Tether (USDT) for transactions. In spite of this, Iran and Russia have been putting a great effort into adopting cryptocurrency for international trade.

In August 2022, Iran's Industry, Mines, and Trade Ministry gave the green light for cryptocurrency to be utilized for the purpose of imports into the nation despite ongoing international trade restrictions. The local government claimed that the new regulations would facilitate Iran in dealing with international trade sanctions. In sequence, Iran completed its first international import transaction by using $10 million in cryptocurrency.

The Bank of Russia, which has typically been against utilizing cryptocurrencies as a form of payment, has now agreed to let them be used in foreign trading to reduce the impact of international sanctions. However, they have yet to specify exactly which cryptocurrencies would be employed in those transactions.