Russia and Iran, two countries looking to develop policies to regulate the cryptocurrency sector, are reportedly planning to form an alliance to jointly develop a stablecoin. The crypto asset, which would be backed by gold as a reserve asset, could be dubbed the “Persian Gulf token.” This stablecoin aims to eliminate the need for fiat currencies to facilitate cross-border transactions. To create this stablecoin, the Central Bank of Iran will work with the Russian government in the coming months.
The development was led by Alexander Brazhnikov, Executive Director of the Russian Association of Crypto Industry and Blockchain, as stated under a report from Russia’s Vedomosti publication.
After Russia declared that a military war issued to Ukraine last year many nations sanctions against Russian citizens accessing funds stored in international accounts.
The turn of events has nudged Russia in a different way than it originally intended crypto assets – they forbid.
Iran, on the other hand, has been approaching the crypto sector with a friendly approach for some time. Financial regulators there are already expanding the pilot test of their central bank digital currency (CBDC) called the digital rial.
Furthermore, diplomatic relations between the US and Iran have remained anything but cordial over the past several decades. Therefore, Iran is also trying to eliminate the need for the US dollar to facilitate international transactions.
It is reported that the stablecoinafter its launch, will begin operations in the Astrakhan Special Economic Zone, where Russia receives cargo shipments from Iran.
More details about the upcoming stablecoin, which will be jointly developed by Russia and Iran, remain to be seen.
Stablecoins are cryptocurrencies, which trade in the otherwise volatile market and hold better prices than other altcoins during times of market decline. Stablecoins are pegged to the value of regulated reserved assets such as fiat currencies or gold.
