Russian Stablecoin Pegged To Gold Can Be Used In Export Transactions - Lawmaker

Russia can issue a stablecoin pegged to gold and use it in international financial operations, a senior Russian lawmaker said on Wednesda

MOSCOW (UrduPoint News / Sputnik - 26th January, 2023) Russia can issue a stablecoin pegged to gold and use it in international financial operations, a senior Russian lawmaker said on Wednesday.

A stablecoin is a form of cryptocurrency, the value of which is pegged to a reference asset, for instance, precious metals or another cryptocurrency.

"We discussed the possibility of using digital financial assets in settlements between countries, this will help, among other things, with the purchase of our agricultural products. (We) discussed the issuing of a stablecoin backed by some kind of valuable assets. For example, I suggested using gold bars that refineries can provide, and for them, digital financial assets can already be issued, which will then act as a means of payment in mutual settlements. The proposal was received with interest. (It is) an example that we are moving in the right direction," Anatoly Aksakov, the head of the Russian Parliament's Committee on the Financial Market, told the Parliamentary newspaper.

On January 16, the executive director of the Russian Association of the Cryptoindustry and Blockchain, Alexander Brazhnikov, told the Vedomosti newspaper that the Central Bank of Iran was considering the creation of a certain token for the Persian region in cooperation with Russia, which will be backed by gold, and can be accepted as a means of payment in foreign trade settlements instead of the dollar, ruble and Iranian rial.

In September, Russian Prime Minister Mikhail Mishustin also instructed authorized bodies to agree on a draft regulation for the issuance and circulation of digital currency in Russia related to mining, as well as the use of digital currencies in international settlements.