Russia to Collaborate with Friendly Nations on Stablecoins
- Russia allegedly uses cryptocurrencies to evade sanctions from the US and the EU amidst its war with Ukraine.
- President Putin believes the dollar has been weaponized by the US, and there is a need for an alternative.
Sanction-hit Russia is reportedly in talks with its allies to establish payment platforms for cross-border settlements in stablecoins. State-run news outlet TASS reported on Tuesday that deputy finance minister Alexey Moiseev had stated that the government was trying to establish the settlement platform in order to do away with the use of dollars and euros.
According to reports, the finance minister claimed that the Russian government planned to impose new policies to establish the stablecoins platform between Russia and allied countries, which might include North Korea, China, and Belarus.
Speaking of the ongoing collaboration, Alexey said,
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. Stablecoins can be pegged to some generally recognized instrument, for example, gold, the value of which is clear and observable for all participants.
The Finance Ministry and the Bank of Russia previously acknowledged that cross-border cryptocurrency transactions are difficult to do without under the current circumstances. Since it invaded Ukraine in February, Russia has been the recipient of heavy sanctions imposed by the United States and the European Union.
These sanctions have crippled Russia’s economy, and the country has been searching for alternatives. Several prominent Russians have had their assets seized, while others have been banned from several countries and organizations. The U.S. Office of Foreign Assets Control also included a number of Russian businesses and individuals on its list of Specially Designated Nationals.
According to reports, Russian authorities are looking into utilizing cryptocurrencies to bypass sanctions during the Ukraine war. The European giant is rumored to be accepting funds in stablecoins despite strict crypto policies.
The United States has already voiced its concerns about the possibility of Russia boosting its economy with cryptocurrencies. However, President Vladimir Putin has long desired to break away from the dollar monopoly, which he believes the US has weaponized.