Russia and Iran to develop their own cryptocurrency

According to Alexander Brazhnikov, director of RAKIB (Russian Association of the Crypto Industry and Blockchain), the governments of Russia and Iran are studying the possibility of issuing their own stablecoins. It is planned that the value of the digital asset will be pegged to gold.

According to preliminary agreements, the stablecoin will be used for international payments within the Persian region. The existence of such plans was confirmed by the State Duma of the Russian Federation. However, the Russians will launch the stablecoin only after they resolve issues related to the regulation of the crypto market.

Iran has long been using cryptocurrencies to circumvent sanctions. At the end of August, Russian Prime Minister Mikhail Mishustin announced that the occupying country plans to follow Iran’s example. «We need to intensively develop innovative areas, including the introduction of digital assets. This is a safe alternative that can guarantee uninterrupted payment for the supply of goods from abroad and for export,» Mishustin said at the time.

In December, the European Union approved the ninth package of sanctions against Russia in connection with its full-scale invasion of Ukraine. The new sanctions include a ban on the supply of equipment and industrial products. The sanctions list includes 169 organizations that supply goods to Russia «that may contribute to the technological improvement of the Russian defense and security sector.» Prohibitions on the use of cryptocurrencies have also been tightened to prevent wealthy Russians from using digital assets to circumvent sanctions.