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Iran and Russia to create new blockchain-based stablecoin backed by gold!

Key Takeaways:

  • Iran and Russia planning to create a gold backed stablecoin!
  • The token is expected to be used for seamless cross-border settlements and replace fiat currencies.
  • This is being referred to as the ‘token of the Persian Gulf Region’.

In a major news coming out of the Persian Gulf Region – two countries worst affected by US’ stringent economic policies and sanctions – Russia and Iran now want to create a stablecoin on the blockchain that is backed by physical gold! If reports were to be believed, the Central Bank of Iran is said to be cooperating with the Russian government to jointly issue a new crypto.

According to Vedomosti, a Russian news agency, Iran is working with Russia to create a ‘token of the Persian Gulf region’ that would be used to serve as a means of payment in foreign trade. Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain has reportedly said that the token is going to be issued in the form of a stablecoin on the blockchain that will be backed by gold.

This stablecoin is being built with the objective to enable cross-border transactions and settlements instead of using fiat currencies like the US dollar or their own respective currencies like the Russia ruble or the Iranian rial. Russia and Iran have long bore the brunt of the US’ stringent economic policies against them and they are trying to create a new system which is more efficient and free from external interference.

The report also notes that this potential stablecoin would operate in a special economic zone in Astrakhan where Russia has begun accepting Iranian cargo shipments. A Russian lawmaker and a member of the Committee on Information Policy, Information Technology and Communications – Anton Tkachev stressed that this joint stablecoin project would be possible after the digital asset market is fully regulated in Russia.

It must also be noted that both Iran and Russia are among many countries of the world that have strictly banned their citizens from using cryptos like Bitcoin, Ethereum or even US dollar backed stablecoins like Tether (USDT) for payments in their countries. However, at the same time, both countries have been actively working to adopt the technology to be used as a tool of foreign trade.

Iran has also been one of the first countries to approve the use of cryptos for imports into the country to help and mitigate the effect of the stringent economic sanctions on their country. Similarly, ever since the Russia-Ukraine conflict began, Russia to has been forced to implement crypto into their foreign trade systems to bypass the economic sanctions that have been placed against them from the West.

Sourced from CoinTelegraph.

Read more: Top Stablecoins to Invest in 

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