The finance ministry of Russia is working with other agencies to bring a decentralized stablecoin payment platform to bypass the need of the US dollar & Euro.
At present, crypto trading is fully legal in the Russian Federation but no one business or entity is allowed to use crypto as a mode of payment. According to financial experts in Russia, the use of crypto in payment systems may cause a big threat to the dominance of the Russian sovereign fiat currency Ruble, so crypto circulation should be prohibited in the country.
On 6 September, Russian state-backed media outlet Tass reported that the Finance Ministry of Russia is working with Russian-friendly nations to create a platform to allow cross-border payment via the use of stablecoins.
Reportedly, Alexey Moiseev, Deputy minister at the Finance Ministry, said that the government was looking to create such a platform to avoid the need for the US dollar or European Union’s Euro.
The Deputy Minister also said that the country needs to introduce new rules & laws for the new payment platforms, to deal with stablecoin payments easily with friendly nations like China, Belarus, and North Korea.
“We offer mutually acceptable tokenized instruments that will be used on these platforms, which are essentially clearing platforms that we are currently developing with countries,” said Minister. “Stablecoins can be pegged to some generally recognized instrument, for example, gold, the value of which is clear and appreciable for all parties involved.”
So it is clear that Russia may introduce its new unique stablecoin, which will be backed by the value of Gold, which will be acceptable in all Russian friendly countries.
Russia vs Ukraine Conflict & Financial Sanctions on Russia
In late February 2022, Russia started to attack the Ukrainian army. Due to war activities by the Russian government, the EU & US government imposed financial & trade sanctions on Russia.
So probably this new decision to establish a stablecoin payment system is going to be a new gate for Russia to deal with other countries’ goods & services without getting much impact from sanctions.