Russia and Iran began working on a common stablecoin on gold

The Central Bank of Iran is considering the possibility, together with Russia, to create a certain token of the Persian region, which can be accepted as a means of payment in foreign trade settlements instead of the dollar, ruble and Iranian rial. Alexander Brazhnikov, Executive Director of the Russian Association of the Crypto Industry and Blockchain, told Vedomosti about this. Anton Tkachev, a member of the Duma Committee on Information Policy, Information Technology and Communications, confirmed the fact of negotiations, but specified that this issue would be actively discussed at the state level only after cryptocurrencies were fully regulated in Russia.

It is assumed that the token will be backed by gold, i.e. it will be a stablecoin in its type, Brazhnikov said. A stablecoin is a cryptocurrency whose value is pegged to the so-called fiat (“classic” money issued by states) or precious metals. The largest “gold” token at the moment, PAX Gold, ranks 73rd in terms of capitalization, $512 million, according to CoinMarketCap. As a rule, stablecoins are not used for an investment strategy in order to earn on the growth of an asset, but for digital calculations. Investors usually perceive gold as a protective asset, that is, to save their funds, and not to increase them.