Iran And Russia To Launch A Joint Stable coin Backed by Gold
According to the Vedomosti news agency, the Iranian Central Bank and the Russian government are collaborating on the launch of a new cryptocurrency known as the “Token of the Persian Gulf Region.” The most recent information from the authorities in both countries suggests that it is most likely a stablecoin that is backed by gold.
It will eventually take the place of fiat currencies like dollars, euros, and rubles in international trade. According to Alexander Brazhnikov, secretary general of the Russian Crypto Industry and Blockchain Association, the coin will be used in the Astrakhan special economic zone and will be backed by gold.
A cryptocurrency known as a stablecoin has a price that is linked to a reference value.
Alexei Moiseyev, Russia’s Deputy Finance Minister, stated that he is collaborating with numerous nations to issue new gold-backed cryptocurrencies in order to eliminate trading in fiat currencies like US dollars and euros. We offer a tokenized vehicle that both parties can use on these platforms, which is made abundantly clear by the platforms we are currently developing with these nations., can be linked to commodities that are well-known, like gold, whose value is clear to all participants and easy to see,” Moiseev said.
The Bank of Russia and the Ministry of Finance agreed that “it is impossible without cross-border payments in cryptocurrencies” in the current situation.
During the fall session of the House of Commons, the lower house of Congress, the Treasury Department hopes to resolve issues regarding cross-border payments of cryptocurrencies.
A treaty was recently signed between the two nations to make the Caspian Sea’s transportation system, which includes the Russian city of Astrakhan at its northern end, more conducive to trade.
Information Policy Committee
Speculation regarding the development of a brand-new stablecoin has been confirmed by Anton Tkachev, a member of the Duma Information Policy Committee. However, he stated that only after Russia’s government has established a suitable regulatory framework for its local crypto sector could such a move be actively discussed.
At the end of 2022, Chairman of the State Duma Committee on the Financial Markets Anatoly Aksakov stated that these regulations would be implemented by the end of 2023:
“I can only say unequivocally that it cannot be used in the Russian Federation as a means of payment for internal settlements.” “I can assure everyone that we will definitely have crypto as a legal product next year, there will definitely be legislation.”
The digital asset industry has not received the best treatment from Russia and its central bank in particular. It called for a complete ban on all crypto projects, but the Finance Ministry later softened its stance and called for regulations to be implemented.
Conclusion
For a number of months, legislators have been attempting to establish a “national” cryptocurrency platform based on Moscow Exchange standards. In November, CryptoPotato reported that the authorities also discussed this with market participants and are currently awaiting approval from the Bank of Russia and the Ministry of Finance. Mining Bitcoin is one area Russia wants to concentrate on. Last year, President Vladimir Putin stated that he sees this as having potential:
“Of course, we also have a competitive advantage, especially in so-called mining, which means that we have a surplus of electricity and well-trained staff available in the country,” the statement reads.
In 2018, domestic banks and financial institutions were prohibited from trading with cryptocurrencies by the Islamic Republic of Iran’s central bank. To maintain stability, the government declares war on illegal bitcoin miners and suspends legitimate operators.
