Russia's gold-backed cryptocurrency could establish 'new economic order': Zerodha's Nikhil Kamath | Mint
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Business News/ Markets / Cryptocurrency/  Russia's gold-backed cryptocurrency could establish 'new economic order': Zerodha's Nikhil Kamath
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Russia's gold-backed cryptocurrency could establish 'new economic order': Zerodha's Nikhil Kamath

In a bid to abolish trade transactions in fiat currencies like the US dollar and euro, Russia is working with the number of countries to issue a new cryptocurrency backed by gold

Iran and Russia are among the countries that banned their residents from using cryptocurrencies like Bitcoin, Ethereum, etc for payments (AFP)Premium
Iran and Russia are among the countries that banned their residents from using cryptocurrencies like Bitcoin, Ethereum, etc for payments (AFP)

Russia is working with several friendly countries on the creation of clearing platforms for cross-border settlements in stablecoins, according to Tass news agency.

Zerodha co-founder Nikhil Kamath has said that if the trend picks up then one day this could change the world's "economic order".

Kamath in a Tweet wrote, "Iran and Russia to issue a new stablecoin backed by Gold. Damn, if this picks up could be day 1, event 1 of establishing a new economic order everywhere. No idea why it's getting no oxygen from the global press...".

Stablecoins are cryptocurrencies where the price is designed to be pegged to a reference asset.

In a bid to abolish transactions in fiat currencies like the US dollar and euro, Russia's Deputy Finance Minister Alexey Moiseyev said it is working with the number of countries to issue a new cryptocurrency backed by gold.

"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," Moiseyev said.

Earlier, the Finance Ministry and the Bank of Russia agreed that in the current conditions, "it is impossible to do without cross-border settlements in cryptocurrency." The Finance Ministry hopes to resolve issues related to cross-border payments in cryptocurrencies during the autumn session of the State Duma, the lower house of parliament.

According to Vedomosti news agency, the Central Bank of Iran is reportedly cooperating with the Russian government to jointly issue a new cryptocurrency backed by gold.

Iran is working with Russia to create a “token of the Persian Gulf region" that would serve as a payment method in foreign trade.

Iran and Russia are among the countries that banned their residents from using cryptocurrencies like Bitcoin, Ethereum, etc and stablecoins like Tether (USDT) for payments. At the same time, Iran and Russia have been actively working to adopt crypto as a tool of foreign trade.

In August 2022, Iran’s Industry, Mines, and Trade Ministry approved the use of cryptocurrency for imports into the country.

Subsequently, the country placed its first international import order using $10 million worth of crypto.

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Published: 17 Jan 2023, 07:38 AM IST
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