Iran and Russia want to issue new stablecoin backed by gold

Iran's central bank would cooperate with Russia to jointly issue a new gold-backed cryptocurrency.

According to the Russian news agency Vedomosti, Iran is working with Russia to create a “token of the Persian Gulf region” that would serve as a payment method in foreign trade.

The token should be issued as a gold-backed stable, by alexander brazhnikov, CEO of the Russian Association of Cryptographic and Blockchain Industry.

Stablecoin is intended to allow cross-border transactions rather than trust currencies such as the US dollar, the Russian rouble or the Iranian rial. The report notes that the potential cryptocurrency would function in a special economic zone in astrakhan, where Russia has begun accepting shipments of Iranian goods.

Anton tkachev Russian law-maker, an information policy committee member, ICT, highlighted that a joint stabilization project would not be possible until the digital asset market is fully regulated in Russia. After multiple delays, the Russian lower house of parliament once again promised to start regulating crypto transactions in 2023.

Iran and Russia are among the countries that banned their residents from using cryptocurrencies like Bitcoin () and stablecoins like Tether () for payments. In parallel, Iran and Russia are actively working to adopt cryptography as an external trade tool.

Related: Russia to begin work on CBDC settlement system as sanctions endure

In August 2022, Iran’s Industry, Mines and Trade Ministry approved the use of cryptocurrency for imports into the country amid ongoing international trade sanctions. The local government has stated that the new measures will help Iran to ease global trade sanctions. Iran subsequently placed its first international import order using $10 million worth of crypto.

The Bank of Russia — historically opposed to using crypto as a payment method — agreed to allow crypto in foreign trade to mitigate the impact of international sanctions. At no time did the regulator specify which cryptocurrencies would be used in such transactions.