Russia and Iran will soon realize Bitcoin is the answer they want since their recently-announced stablecoin experiment is bound to fail.
Earlier this month, it was reported that the Central Bank of Iran is collaborating with the Russian Association Of The Crypto Industry And Blockchain to develop a stablecoin backed by gold for use in settling transactions. This is not either country’s first journey into the crypto realm, nor will it be their last. However, this endeavour will fail, eventually moving both nations one step closer to accepting Bitcoin.
In August of 2022, the headline “Iran Approves the Use of Cryptocurrency for Imports to Evade Sanctions” came and went with few people noticing, and those who did give it little attention. Putting aside the fact that the source of this headline was a Saudi-funded media outlet with the likely goal of destabilizing and delegitimizing Iran, it is important to note that Iran successfully completed a trade in August with an estimated value of $10 million, which was likely conducted in bitcoin.
There are about twenty cryptocurrencies that might have been used to accomplish this transaction based on their daily volume; however, if we take these cryptocurrencies by daily volume and agree that none with a daily volume less than $1 billion could have conceivably been used (anything larger than 1% of daily volume would alter the price too dramatically; 1% of $1 billion is $10 million), we are left with seven cryptocurrencies: Ripple (XRP), Solana (SOL), USDC, Ether, and bitcoin.
Iran previously prohibited Bitcoin mining owing to the strain on Tehran’s electricity system. Since then, it has returned all mining equipment and, as mentioned before, said that $10 million in the international transaction was conducted using bitcoin. To say the least, Iran has started to recognize Bitcoin’s potential.
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