Russia to settle cross-border payments using stablecoins
Russia is developing a digital platform that will allow it settle cross-border transactions with more friendly countries using commodity-backed stablecoins.
Deputy Finance Minister Alexey Moiseyev has confirmed that Russia is working with crypto-friendly countries to facilitate cross-border payments using stablecoins as sanctions from U.S and U.K. mount, local news TASS reported on Sept. 6.
The Finance Minister and Central Bank had earlier agreed that Russia can’t do without cross-border settlements in cryptocurrency.
Consequently, Russia is developing a digital platform that will allow it to settle cross-border transactions with more friendly countries using commodity-backed stablecoins.
“We are currently working with a number of countries to create bilateral platforms in order not to use dollars and euros. We offer mutually acceptable tokenized instruments that will be used on these platforms, which are essentially clearing platforms that we are currently developing with these countries.”
Moiseyev added that the plan is to develop a stablecoin that will be pegged to recognized instruments like gold, so the value is “clear and observable for all participants.
Russia turning to Stablecoin
The increased sanction against Russia has left the country with little option but to explore alternative payment methods using stablecoins.
Earlier in July, Russia’s Central Bank and Ministry of Finance agreed that a low-risk stablecoin could suffice for its use as global sanction mounts.
Head of the Ministry of Finance Ivan Chebeskov argued that a viable stablecoin could be backed by Russia’s currency “ruble” or any physical assets such as gold, oil, or grain to guarantee face value redemptions.
Crypto important for Russia’s survival
The Russian Ministry of Finance has been working to see that the country becomes crypto-friendly as it has proved to be a tool to evade sanctions.
In April, the Finance Ministry was reportedly working on the “on digital currency” bill which will see crypto legalized as a means of payment and validated as an investment class.
A senior official of Russia’s Central Bank also said the country was open to allowing the use of cryptocurrencies for international payments.