Russia’s government and Iran’s central bank could supposedly team up and create a stablecoin called “the token of the Persian Gulf region.”
The Russian government and the Central Bank of Iran are reportedly mulling a partnership to create a new stablecoin that can facilitate cross-border settlements.
The token will be pegged to the valuation of gold.
The Mutual Operation
According to a report by the Russian media outlet Vedomosti, the local authorities could collaborate with Iran’s central bank to launch a new crypto asset called “the token of the Persian Gulf region.”
Assuming it sees the light of day, it will replace fiat currencies such as the dollar, the euro, the ruble, and others in foreign trade transactions. Alexander Brazhnikov – Executive Director of the Russian Association of the Crypto Industry and Blockchain – said the coin will be backed by gold and will be employed in a special economic zone in Astrakhan.
The two nations recently signed a contract to facilitate trade through a transportation system in the Caspian Sea, with the northern tip of the network being the Russian town 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 could be actively discussed only when Russia’s government implements an appropriate regulatory framework on its local crypto sector.
Anatoly Aksakov – Chairman of the State Duma Committee on the Financial Markets – stated at the end of 2022 that the authorities will apply such rules by the end of 2023:
“I can assure everyone that we will definitely have crypto as a legal product next year, there will definitely be legislation… I can only say unequivocally that it cannot be used in the Russian Federation as a means of payment for internal settlements.”
Iran and Russia Share Similar Views on Crypto
Russia, specifically its central bank, has not displayed the most friendly stance on the digital asset industry. It proposed a total ban on all crypto endeavors, but the Finance Ministry later softened the tone to “just” implementing regulations.
The lawmakers have been trying to establish a “national” cryptocurrency platform based on the Moscow Exchange standards for months. In November, the authorities also discussed this with market participants and now await the approval of the Ministry of Finance and the Bank of Russia.
One area where Russia wants to concentrate on is bitcoin mining. President Vladimir Putin said last year that he sees potential in it:
“Although, of course, we also have certain competitive advantages here, especially in the so-called mining. I mean the surplus of electricity and the well-trained personnel available in the country.”
The Central Bank of the Islamic Republic of Iran has also been quite negative on crypto, prohibiting domestic banks and financial institutions from dealing with it in 2018. The government declared war on illicit bitcoin miners while also pausing even the legal operators to preserve the stability of the national electricity system.