The prospective stablecoin intends to facilitate international transactions in lieu of fiat currencies such as the U.S. dollar, the Russian ruble, and the Iranian rial.
According to reports, the Central Bank of Iran is collaborating with the Russian government to produce a new cryptocurrency backed by gold.
According to the Russian news source Vedomosti, Iran is collaborating with Russia to develop a “token of the Persian Gulf area” for use in international commerce.
The stablecoin attempts to facilitate international transactions in lieu of fiat currencies such as the U.S. dollar, the Russian ruble, and the Iranian rial. According to the article, the proposed cryptocurrency would function in a special economic zone in Astrakhan, where Russia began accepting Iranian goods exports.
A combined stablecoin initiative, according to Russian politician Anton Tkachev, a member of the Committee on Information Policy, Information Technology, and Communications, is impossible until the digital asset market in Russia is completely regulated. After many delays, the Russian lower house of parliament has once again pledged to begin regulating crypto transactions in 2023.
Iran and Russia are among the nations that have prohibited their citizens from using cryptocurrencies such as Bitcoin and stablecoins such as Tether (USDT) for financial purposes. At the same time, Iran and Russia have been working intensively to use cryptocurrency as a vehicle for international commerce.
Despite current international trade restrictions, Iran’s Ministry of Industry, Mines, and Trade legalised the use of cryptocurrencies for imports into the country in August 2022. According to the local authorities, the new measures will assist Iran in mitigating global trade restrictions. Iran made its first order for overseas imports using $10 million worth of cryptocurrency.
The Bank of Russia, which has long resisted the use of crypto as a payment mechanism, decided to permit the use of crypto in international commerce in order to reduce the effect of international sanctions. However, the regulator has never specified which digital currencies might be utilised for such transactions.