Anatoly Aksakov, the head of the Financial Market Committee in the lower house of the Russian parliament, told a newspaper that the Russian Federation is considering developing a stablecoin backed by gold that can be used for cross-border payments, especially with Iran.
After a Russian delegation visited the Islamic Republic, the lawmaker revealed that they had talked about the issuance of stablecoins, which are digital financial assets (DFAs) backed by specific valuables. He asserted that he had spoken about gold, gold bars, refineries that could supply them, or locations where gold was kept and that DFAs were issued against these reserves.
“We discussed the issuance of stablecoins, digital financial assets (DFAs) backed by certain valuables. For example, I spoke about gold, gold bars, refineries can provide them, or centers where gold is stored, and DFAs are issued against these reserves.”
According to Aksakov, such a stablecoin can be utilized as a form of payment, such as in settlements between Russia and Iran. The Iranian side has shown interest in the plan, he continued.
The senior State Duma official also pointed out that Iran is heavily indebted to Russia for products that were given to Iran. However, estimates for Russian exports are complicated by the fact that the rial, the Iranian currency, swings a lot and has two official exchange rates to the dollar, one of which is approved by the Central Bank of Iran.
In January, the chairman of the Russian crypto industry association informed a business daily that Iran’s central bank is considering building one with Russian cooperation, sparking news that Tehran and Moscow are discussing the potential launch of a gold-based digital currency. The executive explained that the token would be used to facilitate trade in the Persian region.
In May 2019, Elvira Nabiullina, the governor of the Bank of Russia, participated in a meeting in the State Duma where the idea to launch a Russian stablecoin backed by gold was first discussed. At the time, Vladimir Gutenev, a member of the house, urged that the central bank start discussions with the other BRICS nations about the issue and claimed that it is the least vulnerable asset. They could probably find cooperation from China, India, and Brazil.
On January 16, Todayq news broke the story of the Russia-Iran partnership to create a stablecoin backed by gold when the executive director of the Russian Association of Crypto and Blockchain Industry said that the Central Bank of Iran is anxious to introduce such a stablecoin. According to Anton Tkachev, a member of the Russian parliament and the Committee on Information Policy, Information Technology, and Communications, this issue would be considered by the government after Russia implements its complete set of regulations and guidelines for cryptocurrencies, which is expected to happen this year.
Russia and Iran have been looking into ways to use decentralized cryptocurrency to get around limits on international trade after being pressured by Western sanctions. Iran made its first formal import order using cryptocurrency in August 2022, while Russia is moving to legitimize cross-border cryptocurrency payments. There are also plans to create a crypto rial and a digital ruble that is not backed by gold.