Iran to repay Russian debts in gold-backed stablecoins

abdelaziz Fathi

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Anatoly Aksakov, the chairman of the Financial Market Committee at the lower house of Russian parliament, told the Parlamentskaya Gazeta newspaper that the digital currency would be backed by gold. The stablecoin will operate in the special economic zone (SEZ) in Astrakhan, where Russia has begun to accept cargo from the Islamic Republic.

“We discussed the issuance of stablecoins, digital financial assets (DFAs) backed by certain valuables. For example, I spoke about gold, gold bars, refineries can provide them, or centers where gold is stored, and DFAs are issued against these reserves,” the lawmaker explained after a visit by a Russian delegation to Iran.

Aksakov also noted that the deal involves Iran’s repayment of debts for Russian products supplied earlier, which was discussed during the State Duma delegation’s visit.

Alexander Brazhnikov, executive director of RAKIB, the Russian cryptocurrency and blockchain association, said due to the economic consequences resulting from the sanctions, Russia has started to work on a new monetary and financial system for the country. Part of this is to develop a commodity-backed stablecoin that will be pegged to recognized assets like gold, so the value is clear and observable for all participants.

A gold-backed ruble stablecoin will allow Russia and Iran to peg the international gold rate instead of a fiat currency. The digital currency would also allow other countries to exchange this coin amongst themselves without external participation in transactions.

The Russian law “On Digital Financial Assets,” which entered into force in 2021, already allows three banks to tokenize various assets.

In late 2022, the EU tightened an already prohibition on providing digital-asset services to Russia. It has imposed a sweeping ban on providing crypto services to Russians, meaning they won’t be able to hold any assets in EU crypto wallets unless they live in the bloc.

Before the recent rules, European crypto providers were allowed to provide Russian residents and entities with limited crypto payments of up to 10,000 euros ($9,900).

Read this next

Digital Assets

CFTC Charges Binance and Its Founder, CZ, with Willful Evasion of Federal Law

The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Changpeng Zhao and three entities that operate the Binance platform with numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations.

Institutional FX

Macau announces MCEX exchange for institutional exposure to China’s micro and small businesses

One issue that can’t be overlooked, however, is how transparent can these cash flows be, given the reality of parallel economies in micro and small businesses. 

Digital Assets

Sphynx Ink and OpenSea Partner for “Winkles & Flam” Digital Collectibles

Sphynx Ink Inc. is launching Winkles & Flam, the first cartoon duo in the web3 space, with original hand-drawn art and educational content focused on video game history.

Industry News

Titanium Blockchain CEO sentenced to 4 years in prison for $21m crypto scam

He did not use the invested money as promised but instead commingled the ICO investors’ funds with his personal funds, using at least a portion of the offering proceeds for expenses unrelated to TBIS, such as credit card payments and the payment of bills for his Hawaii condominium.

Industry News

First Citizens acquires Silicon Valley Bank’s deposits and loans

Technically, First Citizens is acquiring Silicon Valley Bridge Bank, National Association, an entity created by the FDIC following the closure of Silicon Valley Bank by the California Department of Financial Protection and Innovation.

Industry News

FXDD named “Most Transparent Broker – Europe” for 2022

Continuing its winning streak, leading brokerage firm FXDD has won the “Most Transparent Broker – Europe” award – granted by the ForexRating.com Awards 2022.

Industry News

The UTIP has launched a reseller program, opening new opportunities to maximize profits

The UTIP Technologies Ltd.  is underway to launch a reseller program. A purpose of the program is to attract new partners, boost a brand awareness and create a unique offer for forex brokers. This allows the reseller to buy and integrate attractively priced UTIP products with their own solutions and expand a range of products for their clients.

Technology

Fxview Sheds Light on Technology Enablement

Traders gain control over their activity and capital with low-latency execution.

Digital Assets

Haru Invest secures EU passport via VASP license in Lithuania

“Haru Invest has been growing stronger than ever, even during the volatile market situation, so we are very keen on crypto regulations. Obtaining a VASP registration is one of many milestones for our company, and it will help build trust in the crypto industry for our members by providing secure and compliant digital asset management services.”

<