A stablecoin pegged to Gold

The countries most affected by international sanctions due to last year’s invasion of Ukraine and the manufacture and testing of nuclear warheads, want to join forces for the creation of a stablecoin that is linked to the performance of Gold.

The move turns the clock back to a pre-Bretton Woods world in which the value of the currency (at the physical time) was tied to Gold and therefore very stable. 

In a macroeconomic situation such as the one we have been living in for more than a year now, this becomes even more useful. 

The stability of a currency is a valuable ally in the fight against inflation, moreover, the currency is likely to appreciate over time and this creates a plus for the two countries. 

The nascent stablecoin aims to stand as the official trading currency of the two states and effectively replace the US dollar, Russian ruble or Iranian rial for all those cross-border trade transactions.

The country of Putin and the state of the Ayatollahs are collaborating to give birth to this new crypto, the Central Bank of Iran is at the forefront with its programmers and intends to tie the value of the currency to the ultimate scarce commodity, namely Gold. 

According to Russia’s Vedomosti, a Soviet news agency, Iran is collaborating with Moscow on the “Persian Gulf region token” that will serve as a currency of exchange in the region and a means of circumventing sanctions by the international community. 

The executive director of the Russian Association of Crypto Industry and Blockchain, Alexander Brazhnikov, believes crypto should be designed as a stablecoin. 

Astrakan will be the theater where this new currency will mainly perform its function.

The region is an economic zone where the Kremlin already operates undisturbed and does business with goods from Iran. 

According to Anton Tkachev, a Russian legislator and member of the Committee on Information Policy, Information Technology and Communications in Moscow, before starting a supranational stablecoin, a worthy regulatory framework regulating crypto in Russia should be put together and then followed up with something similar in cooperation with the friendly country.

The lower house of Putin’s parliament has said it will begin work on bringing a new framework law on cryptocurrencies to life by 2023.

The Bank of Russia has always taken an obstructive stance toward the world of cryptocurrencies for commercial use, however it recently turned toward a more open approach. 

The country’s Central Bank has allowed the use of cryptocurrencies for foreign trade and bypass the damage caused by the international community through sanctions. 

The regulator has never specified what is how these cryptocurrencies are to be used but it is certain that the openness may concern the new stablecoin in the plans of Russia and Iran.

On the Iranian side, crypto import was recently approved (summer 2022) by Iran’s Ministry of Industry, Mines and Trade.

The government of the nuclear power at the intersection of Africa and Asia supports collaboration with Moscow to overcome sanctions from the UN, the United States of America, Europe and Australia. 

The first transaction in crypto for Iran in anticipation of the new common currency amounts to 10 million US dollars that have been saved from the international community’s bounty.