The Central Financial institution of Iran is reportedly cooperating with the Russian authorities to collectively difficulty a brand new cryptocurrency backed by gold.

Iran is working with Russia to create a “token of the Persian Gulf area” that will function a cost technique in international commerce, Russia’s information company Vedomosti reported on Jan. 15.

The token is projected to be issued within the type of a stablecoin backed by gold, based on Alexander Brazhnikov, govt director of the Russian Affiliation of Crypto Business and Blockchain (RACIB).

The stablecoin goals to allow cross-border transactions as a substitute of fiat currencies like the USA’ greenback, the Russian ruble or the Iranian rial. The potential cryptocurrency would function in a particular financial zone in Astrakhan, the place Russia began to just accept Iranian cargo shipments, the report notes.

Russian lawmaker Anton Tkachev, a member of the Committee on Data Coverage, Data Know-how and Communications, harassed {that a} joint stablecoin mission would solely be attainable as soon as the digital asset market is absolutely regulated in Russia. After a number of delays, the Russian decrease home of parliament as soon as once more promised to begin regulating crypto transactions in 2023.

Iran and Russia are among the many international locations that banned their residents from utilizing cryptocurrencies like Bitcoin (BTC) and stablecoins like Tether (USDT) for funds. On the identical time, each Iran and Russia have been actively working to undertake crypto as a software of international commerce.

Russia to start work on CBDC settlement system as sanctions endure

In August 2022, Iran’s Business, Mines and Commerce Ministry authorized the usage of cryptocurrency for imports into the nation amid ongoing worldwide commerce sanctions. The native authorities stated that the brand new measures will assist Iran mitigate world commerce sanctions. Iran subsequently positioned its first worldwide import order utilizing $10 million value of crypto.

The Financial institution of Russia — which has been traditionally against the concept of utilizing crypto as a cost technique — agreed to permit crypto in international commerce as a consequence of sanctions as nicely. The regulator has by no means clarified what cryptocurrency can be used for such transactions although.