Russia and Iran will create a digital currency by 2025
2023.01.16 08:09
Russia and Iran will create a digital currency by 2025
By Tiffany Smith
Budrigannews.com – According to reports, the Iranian Central Bank and the Russian government are working together to jointly issue a new gold-backed cryptocurrency.
According to a report published on January 15 by the Russian news agency Vedomosti, Iran and Russia are collaborating on the development of a “token of the Persian Gulf region” that would be used as a payment method in international trade.
According to Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain (RACIB), the token is anticipated to be issued as a stablecoin backed by gold.
Instead of using fiat currencies like the US dollar, the Russian ruble, or the Iranian rial, the stablecoin aims to make cross-border transactions possible. According to the report, a special economic zone in Astrakhan, where Russia began accepting Iranian cargo shipments, is where the potential cryptocurrency would operate.
Anton Tkachev, a member of the Committee on Information Policy, Information Technology, and Communications in Russia, emphasized that a joint stablecoin project would not be feasible until the digital asset market in Russia is fully regulated. The Russian lower house of parliament promised once more to begin regulating cryptocurrency transactions in 2023, despite numerous delays.
Residents of Iran and Russia were prohibited from making payments with stablecoins like Tether (USDT) and cryptocurrencies like Bitcoin (BTC). At the same time, Russia and Iran have been working hard to use cryptocurrency for international trade.
Despite ongoing international trade sanctions, Iran’s Industry, Mines, and Trade Ministry approved the use of cryptocurrency for imports in August 2022. The new measures, according to the local government, will assist Iran in mitigating global trade sanctions. After that, Iran used crypto to make its first international import order for $10 million.
Due to sanctions, the Bank of Russia, which has historically opposed the use of cryptocurrencies as payment methods, agreed to allow cryptocurrencies in international trade. However, the cryptocurrency that would be used in such transactions has never been specified by the regulator.
