Iran and Russia Creating Gold-Backed Stablecoin

Iran and Russia are reportedly in talks to create a stablecoin backed by gold. Both countries are facing heavy US sanctions and are therefore working together to create a new digital way to allow them to operate internationally. According to a report from a Russian news site,  the new token will be used as a means of payment in foreign trade, in place of traditional currencies usually used; the US dollar, Russian ruble, or the Iranian rial.

These plans will be moving forward despite both Iran and Russia being included in a list of countries to ban the use of cryptocurrencies for residents. Anton Tkachev, who is on the Information Policy, Information Technology, and Communications committee, has said that this joint stablecoin will only be possible once Russia has fully regulated the cryptocurrency market. This is expected to be revisited in Russian parliament this year after several recent delays. According to Coin Telegraph, in August 2022 Iranian businesses were given permission by Iran's trade ministry to use cryptocurrency as a form of payment for imports into the country. The Bank of Russia has also agreed to use cryptocurrencies in foreign trade due to geopolitical changes.