Russia and Iran are exploring the development of a gold-backed crypto

In view of the expansion of digital assets and the constraints imposed on nations, Russia and Iran are studying the creation of a gold-backed stablecoin.

Alexander Brazhnikov, the executive director of the Russian Association of the crypto industry and blockchain, disclosed that the Central Bank of Iran is considering the creation of a stablecoin with the Russian Federation for use in international trade transactions, as reported by the local Russian news outlet Vedomosti.

Brazhnikov said that the value of the currency will be pegged to gold (i.e., a stablecoin). Since Astrakhan is a free-trade zone where Russia has begun admitting Iranian products, the currency would be acceptable there.

Anton Tkachev, a Duma member and member of the Committee on Information Policy, Information Technology, and Communications, confirmed the existence of the conversations. After cryptocurrencies are fully regulated in Russia, which is expected to occur in 2023, Tkachev said that the government will study the problem.

The Russian Central Bank does not permit the use of cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) as a payment mechanism anywhere in the country. Alternatively, it permits the use of cryptocurrencies in commercial transactions, including international commerce.

Notably, after Russia’s full-scale invasion of Ukraine, the European Union implemented a restriction barring European enterprises from supplying cryptocurrency-related services to Russian citizens. In August 2022, Iran imported items worth millions of dollars using cryptocurrency for the first time ever.

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