Russia starts working on gold-backed stablecoins, collaborating with several friendly countries for this

The Iranian government has started working with the Putin-led government to develop a token for the Persian Gulf region to be used as a payment method in international trade.

New Delhi,UPDATED: January 17, 2023 12:48 PM IST

From Jasmine Anand:

According to Vedomosti, a Russian news outlet, the Central Bank of Iran has started working with the Russian government to launch a new gold-backed cryptocurrency dubbed the “Persian Gulf region token.”

Said token will be issued as a gold-backed stablecoin, quotes Alexander Brazhnikov, Executive Director of RACIB, i.e. the Russian Crypto Industry and Blockchain Association. Brazhnikov goes on to explain that the aforementioned coin would help against volatility, noting that it could be used in Astrakhan, a free trade zone where Russia started accepting Iranian goods.

It must be noted that the country is working with several friendly countries to issue a new gold-backed cryptocurrency to abolish transactions in fiat currencies such as the US dollar and the euro, said Russian Deputy Finance Minister Alexey Moiseyev. He added: “We offer mutually acceptable tokenized instruments to be used on these platforms, which are essentially clearing platforms that we are currently developing with these countries. Stablecoins can be linked to a widely recognized instrument, such as gold, whose value is clear and observable for all participants.’

Interestingly, the Central Bank of Russia does not support the use of cryptocurrencies like Bitcoin as a means of payment at home. However, the same applies to international trade. Iran has also banned its residents from using cryptocurrencies like Bitcoin, Ethereum, etc. and stablecoins like Tether (USDT) for payments while actively working to adopt crypto as a tool of foreign trade.

Gold-backed crypto could pave the way for a new world economic order

Experts like Nikhil Kamath, co-founder of Zerodha, believe that if the trend picks up, it could one day transform the world economic order.

He also tweeted about it.

Iran and Russia release a new stablecoin backed by gold.

Hell, if this keeps up, Day 1, Event 1 of the establishment of a new economic order could be anywhere.

No idea why it’s not getting oxygen from the global press… — Nikhil Kamath (@nikhilkamathcio) January 16, 2023

What are stablecoins?

Stablecoins are cryptocurrencies whose value is pegged to traditional or fiat currency. In fact, stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies and are relatively more useful as a medium of exchange than more volatile cryptocurrencies.

Published on:

January 17, 2023

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers