Reports suggest the Central Bank of Iran and the Russian government are jointly working to issue gold-backed crypto for foreign trade. Read to know more.
All about the gold-backed crypto
As per Vedomosti, a Russian news agency, Iran and Russia are working to create a “token of the Persian Gulf region”. The gold-backed crypto is aimed at serving as a foreign trade payment mode. In August 2022, Iran placed its first official import using cryptocurrency. The import is worth million and is the first step that will allow the country to trade by bypassing the dollar-dominated financial system. (https://woodlees.com)
As per Alexander Brazhnikov, the token is projected to be issued as a stablecoin backed by gold. Brazhnikov is the executive director of the Russian Association of Crypto Industry and Blockchain. The crypto stablecoin is aiming to enable cross-border transactions. Anton Tkachev, a Russian lawmaker stressed that the project will be possible once the digital asset market is completely regulated in Russia. Tkachev is a member of the Committee on Information Policy, Information Technology, and Communications.
More on the recent changes
Russia and Iran are among the nations that previously banned residents from using cryptocurrencies such as Bitcoin. They also banned the usage of stablecoins for payments. However, Iran and Russia are working towards adopting crypto for foreign trade. Mid-last year, the Industry, Mines and Trade Ministry of Iran approved cryptocurrency usage for imports amidst the ongoing trade sanctions. The government added that these measures will help in mitigating these sanctions. Similarly, the Bank of Russia which previously was a strong opposer of cryptocurrency as a payment method is planning to adopt it for trading with other nations. However, it did not clarify the cryptocurrencies which will be selected.