Russia And Iran Will Make A Golden Stablecoin

Russia and Iran are developing a stablecoin that is supported by gold. (Photo; Doc. Russia Today)

JAKARTA The stablecoin cryptocurrency has attracted the attention of a number of countries lately. This is because stablecoins have stable value because they are pegged to other assets such as fiat and gold. Most recently, Russia and Iran plan to release stablecoins for international payments.

Both countries are exploring the possibility of releasing stablecoins supported by gold. With this possibility, the two countries have the potential to clearly regulate crypto regulations.

Iran's central bank is considering the possibility to create, with Russia's participation, a digital token to facilitate trade in the Persian region, according to a report citing the head of the crypto industry organization in the Russian Federation.

The coin is acceptable as a means of payment in international settlements, Executive Director of the Association of Indonesian Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), Alexander Brazhnikov, told the Vedomosti business daily.

"It is assumed that the token will be backed by gold, it will be stablecoin," the caption reads.

According to a Bitcoin.com News report, although Russian authorities have postponed the implementation of comprehensive regulations for bitcoin and the like, with the Bank Russia opposing their legalization in the country, a proposal to allow the use of gold-backed stablecoins circulated last year.

Currently, there are only a few stablecoins that are pegged for gold, one of which is PAX Gold. The coin ranks 74th by market cap, which is worth more than $511 million. PAX Gold itself was developed on the Ethereum ERC20 blockchain.

Recent developments suggest that Russia and Iran are in the negotiation stage to use cryptocurrencies in trading between the two countries. The news was confirmed by members of the State Duma Information, Information and Communication Policy Committee, Russia's lower house of parliament.

However, he stated that this issue would be discussed actively at the country level only after cryptocurrencies were properly regulated. Russia and Iran, which are facing economic and financial sanctions from the West, have seen cryptocurrencies as a means to circumvent restrictions. The two countries are also developing their respective central bank digital currencies (CBDCs), namely Rubel Digital and Rial Kripto.