As a crypte detective it is interesting to see how countries like Iran and Russia, who have historically been against the use of cryptocurrencies for payments, are now actively exploring the use of a stablecoin as a means of bypassing foreign sanctions.
Iran and Russia Working on Gold-Backed Stablecoin
The rumors of a stablecoin backed by gold being developed by the Central Bank of Iran in partnership with the Russian government is an intriguing development. The potential for this “token of the Persian Gulf region” to be used as a means of payment in foreign trade could be a game changer for these countries, especially in light of the current economic sanctions they are facing.
Regulation is Necessary for Joint Stablecoin Project
However, as the Russian parliamentarian Anton Tkachev points out, a joint stablecoin project can only be possible if the market for cryptocurrencies in Russia is fully regulated. The Russian lower house has recently promised to begin regulating crypto transactions in 2023, after multiple delays.
Iran, Russia, and Sanctions
It’s worth noting that in August 2022, the Iranian Ministry of Industry, Mines and Trade approved the use of cryptocurrency for import, despite ongoing trade sanctions. The local government stated that the new measures would help Iran minimize the effects of the sanctions. Iran subsequently placed its first international import order of $10 million in crypto. The Bank of Russia, which has historically been against the use of crypto as a means of payment, agreed to use crypto in foreign trade due to sanctions. However, the regulators have not specified which cryptocurrency would be used for this purpose.
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It will be interesting to see how this potential stablecoin project develops and how it will be received by the international community. As a crypto detective, I will definitely keep a close eye on this development and provide my expert insights as more information becomes available.
What is the purpose of the “token of the Persian Gulf region”?
The token of the Persian Gulf region, also known as the joint stablecoin between Iran and Russia, is intended to be used as a method of payment in foreign trade. The stablecoin is backed by gold and aims to facilitate international transactions in place of traditional fiat currencies such as the US dollar, the Russian ruble or the Iranian rial.
How will the stablecoin be used in the face of current sanctions?
Both Iran and Russia are currently under international sanctions, but the stablecoin is seen as a way to circumvent these sanctions and continue foreign trade. The Iranian government has already approved the use of cryptocurrency for import, and the Bank of Russia has also agreed to use crypto for foreign trade purposes in order to avoid the effects of sanctions.
What is the current status of cryptocurrency regulation in Russia?
Russia has been working on regulating the cryptocurrency market for some time, but progress has been delayed. The lower house of the Russian parliament has promised to begin regulating crypto transactions in 2023. However, in order for the joint stablecoin project to be successful, it is essential that the market is fully regulated first.