Explorer

Russia Plans To Launch Gold-Backed Stablecoin For International Trade: Report

Trade and financial matters between Iran and Russia gained momentum after Western sanctions on Russia for its invasion of Ukraine. They are trying to facilitate smooth trade between them.

The Russian Federation is planning to create and launch a gold-backed stablecoin for international trade and transactions. The matter surfaced in media reports after Russian state officials made a diplomatic visit to Iran recently. Officials in Iran have also indicated their desire to move. Anatoly Aksakov, chairman of the Financial Market committee at the lower house of the Russian parliament, Duma, said that the country is considering creating gold-backed stablecoin for transactions with Iran and other countries across the world, reported Parlamentskaya Gazeta newspaper.

As per the report, Aksakov said, "We discussed the issuance of stablecoins, digital financial assets (DFAs) backed by certain valuables." After the lawmaker's Russia visit, he added, " I spoke about gold, gold bars, refineries can provide them, or centres where gold is stored, and DFAs are issued against these reserves."

He explained that stablecoin backed by gold can be used for payments and related settlements between Iran and Russia. Aksakov also confirmed that the Iranian side has also expressed its agreement with the suggestion.

ALSO READ: Digital Currency To Further Bolster Digital Economy: RBI Executive Director Ajay Kumar Choudhary

These announcements come after the lawmaker said that Iran has a huge debt for Russia-supplied goods and that its currency, the rial,  keeps fluctuating. The currency has two exchange rates to the US dollar which makes it even more difficult for trade and calculations in the context of Russian exports.

Earlier in January of this year, media reports surfaced about the possible launch of a digital currency between Russia and Iran. This is aimed at facilitating trade in the Persian region. However, Russia had indicated plans to issue a gold-backed stablecoin in May 2019. It was first discussed in a meeting held at Duman in which Elvira Nabiullina, governor of the Bank of Russia, also participated.

ALSO READ: India Should Lower Crypto TDS To Attract More Trade, Report Suggests

During that time, a member of the house, Vladimir Gutenev, had said that the country's central bank should have talks with the BRICS nations on this issue. He stated, "Gold is the least vulnerable asset. We could probably find understanding in China, India, and Brazil."

ALSO READ: Coinbase Fined $3.6 Million By Dutch Central Bank: Here's Why

According to the VEB.RF Institute for Research and Expertise report released in 2022, a suggestion was given to create a "Golden Ruble."

All of these trade and financial matters between Iran and Russia gained momentum after western sanctions were imposed on Russia for its invasion of Ukraine. Both countries have been trying hard to facilitate smooth trade between them.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

'India-Guyana Ties Made Of Soil, Sweat': PM Modi At Guyanese Parliament, Says 'Democracy First, Humanity First'
'India-Guyana Ties Made Of Soil, Sweat': PM Modi At Guyanese Parliament, Says 'Democracy First, Humanity First'
Maharashtra: Two Latest Exit Polls Show Landslide Victory For Mahayuti, BJP To Emerge As Largest Party
Maharashtra: Two Latest Exit Polls Show Landslide Victory For Mahayuti, BJP As Largest Party
Pakistan: Over 50 Killed, 20 Injured As Militants Open Fire On Passenger Vehicles In Khyber Pakhtunkhwa
Pakistan: Over 50 Killed, 20 Injured As Militants Open Fire On Passenger Vehicles In Khyber Pakhtunkhwa
International Criminal Court Issues Arrest Warrants Against Israeli PM Netanyahu, Ex-Minister Gallant
Arrest Warrants Issued Against Israeli PM Benjamin Netanyahu, Ex-Minister Gallant
Advertisement
ABP Premium

Videos

India Emerges as G20's Growth Leader, Check Out the Latest GDP Rankings | ABP NewsAirtel-Nokia Partnership: Nokia’s Spectacular Comeback, Shakes Up the Telecom Sector | ABP NewsAdani Group in Turmoil: Bribery Scandal Rocks Shares, Plunge by 20% | ABP NewsPLI Scheme: Transforming India's Manufacturing Sector into a Global Powerhouse

Photo Gallery

Embed widget