Russia’s gold-backed cryptocurrency could establish a “new economic order”: Zerodha’s Nikhil Kamath

According to the Tass news agency, Russia is working with several friendly countries to create clearing platforms for cross-border settlements in stablecoins.

Nikhil Kamath, co-founder of Zerodha, said that if the trend picks up, it could one day change the world’s “economic order”.

Kamath wrote in a tweet: “Iran and Russia are issuing a new gold-backed stablecoin. Heck, if this increases, Day 1, Event 1 of establishing a new economic order could be anywhere. No idea why it’s not getting oxygen from the world Press…”.

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

Stablecoins are cryptocurrencies in which the price is linked to a reference value.

In a bid to scrap transactions in fiat currencies like the US dollar and euro, Russian Deputy Finance Minister Alexey Moiseyev said it was working with a number of countries to issue a new gold-backed cryptocurrency.

“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, for example gold, whose value is clear and observable for all participants,” Moiseyev said.

Earlier, the Ministry of Finance and the Bank of Russia agreed that under the current conditions “it is impossible to do without cross-border payments in cryptocurrency”. The Ministry of Finance hopes to resolve issues related to cross-border payments in cryptocurrencies during the fall session of the State Duma, the lower house of parliament.

According to Vedomosti news agency, the Central Bank of Iran is reportedly working with the Russian government to jointly issue a new cryptocurrency backed by gold.

Iran is working with Russia to create a “Persian Gulf region token” to be used as a means of payment in foreign trade.

Iran and Russia are among the countries that have banned their residents from using cryptocurrencies like Bitcoin, Ethereum, etc. and stablecoins like Tether (USDT) for payments. At the same time, Iran and Russia have been actively working to adopt crypto as a tool of foreign trade.

In August 2022, Iran’s Ministry of Industry, Mines and Trade approved the use of cryptocurrency for imports into the country.

The country then placed its first international import order of crypto worth $10 million.

Know your inner investor
Do you have nerves of steel or are you losing sleep over your investments? Let’s define your investment approach.

Take the test Get all the business news, market news, breaking news and latest news updates on Live Mint. Download the Mint News app for daily market updates. More less

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