Iran and Russia to develop a gold-backed cryptocurrency

Iran and Russia are reportedly cooperating to jointly issue a new cryptocurrency/stablecoin backed by gold that will avoid having to use the US dollar. 

According to the Russian Vedomosti news agency, first covered by an article on CoinTelegraph, the goal of this new stablecoin is to enable cross-border transactions instead of fiat currencies, such as the U.S. dollar. The stablecoin is projected to operate in a special economic zone in Astrakhan, where Russia began accepting Iranian cargo shipments.

This news comes amid ongoing international trade sanctions against Iran, which has led the country to look for alternative methods of conducting foreign trade. In August 2022, the Iranian Industry, Mines, and Trade Ministry approved the use of cryptocurrency for imports into the country as a way to mitigate the effects of the sanctions. Iran subsequently placed its first international import order using $10 million worth of crypto.

Russia, too, has been actively working to adopt crypto as a tool for foreign trade. However, according to CoinTelegraph, Russian lawmaker Anton Tkachev emphasised that a joint stablecoin project would only be possible once the digital asset market is fully regulated in Russia. The Russian lower house of parliament has promised to start regulating crypto transactions in 2023, following several delays.

This joint stablecoin project between Iran and Russia is a significant development in the world of cryptocurrency. It highlights the growing trend of countries looking to crypto as a way to bypass traditional financial systems and international sanctions. 

As the digital asset market continues to mature, we can expect to see more countries exploring the use of stablecoins and other forms of cryptocurrency in cross-border trade.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.