It is speculated that the Russian government and the Central Bank of Iran could join forces to create a stablecoin called the Persian Gulf Area Coin.

The Russian government and the Central Bank of Iran are reportedly considering a partnership to create a new stablecoin that could facilitate cross-border settlements.

The token will be pegged to the valuation of gold.

Interchain Operation

According to Russian media Vedomosti, local authorities may work with the Central Bank of Iran to launch a new crypto asset called the “Persian Gulf Regional Token.”

Assuming it comes out, it will replace fiat currencies such as the dollar, euro, and ruble in foreign trade transactions. Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain, said the token will be backed by gold and will be used in a special economic zone in Astrakhan.

The two countries recently signed a contract to promote trade through the Caspian Sea transport system, a network that ends at the Russian town of Astrakhan in the north.

Anton Tkachev, a member of the Duma’s information policy committee, confirmed the rumors about the creation of a new stablecoin. However, he noted that such a move can only be actively discussed if the Russian government implements a proper regulatory framework for its local crypto industry.

Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, said at the end of 2022 that the authorities would implement such rules by the end of 2023:

“I can assure everyone that next year we will definitely have cryptocurrency as a legal product, there will definitely be legislation... I can only say categorically that it cannot be used as a means of payment for internal settlements in the Russian Federation.”

Iran and Russia have similar views on cryptocurrencies

Russia, and especially its central bank, has not shown the friendliest stance toward the digital asset industry. It proposed a blanket ban on all crypto efforts, but the Ministry of Finance later softened its tone and “just” implemented regulations.

For several months, lawmakers have been trying to establish a “national” cryptocurrency platform based on the Moscow Exchange Standards. As the media reported in November, the authorities have also discussed the issue with market participants and are now waiting for approval from the Ministry of Finance and the Bank of Russia.

One of the areas Russia wants to focus on is Bitcoin mining. President Vladimir Putin said last year that he saw potential in it:

"Although, of course, we also have certain competitive advantages here, especially in the so-called mining industry, I mean the country's excess electricity and well-trained personnel."

The Islamic Republic of Iran’s Central Bank has also taken a negative stance toward cryptocurrencies, banning domestic banks and financial institutions from dealing with them in 2018. The government has declared war on illegal Bitcoin miners, while even suspending legal operators to maintain a stable national electricity system.