• Russia is considering creating a stablecoin backed by gold to be used in international settlements, including with Iran.
• The proposal was discussed during a recent visit of a Russian delegation to the Islamic Republic.
• The proposal was received with interest from the Iranian side, and could be used to settle mutual debt between the two countries.
Russia is exploring the potential of launching a stablecoin backed by gold to be used in international settlements, including with Iran. This proposal was discussed during a recent visit of a Russian delegation to the Islamic Republic, and has been met with interest from the Iranian side.
Anatoly Aksakov, the chairman of the Financial Market Committee at the lower house of Russian parliament, told Parlamentskaya Gazeta newspaper that during the visit, they discussed the possibility of issuing a digital financial asset (DFA) that is backed by gold reserves. This could be used as a means of payment, and in mutual settlements between Russia and Iran.
Aksakov explained that Iran has a large debt for goods supplied by Russia. And due to the fact that the Iranian currency, the rial, fluctuates significantly, and has two exchange rates to the U.S. dollar – the official, approved by the Central Bank of Iran, and the market rate – it makes calculations for Russian exports challenging.
In this context, a digital currency backed by gold could provide an effective solution for settling mutual debt between the two countries. Furthermore, it could also be used in other international settlements, providing a secure, stable and reliable digital asset.
It is still unclear when the new digital currency will be launched, or the exact details of how it will work. However, it appears that Russia and Iran are actively exploring the possibility of using a gold-backed stablecoin for mutual settlements between the two countries. It would provide a useful alternative to traditional currency payments, and could be a major step forward in the use of digital currencies for international payments.