Will Russia launch its own stablecoin?

Following recent sanctions on the Russian crypto exchange Garantex, Osman Kabaloev, an official at the Russian Ministry of Finance, calls for the development of a national stablecoin.

Following recent sanctions on the Russian crypto exchange Garantex, Osman Kabaloev, an official at the Russian Ministry of Finance, calls for the development of a national stablecoin. That Reuters reports.

The trigger for this call was the frozen wallets of Garantex, which were blocked in cooperation with stablecoin issuer Tether. On March 6, U.S. Department of Justice officials and authorities in Germany and Finland cooperated to freeze domains linked to Garantex.

According to Kabaloev, the Kremlin is now seriously exploring the possibility of developing its own stablecoin. The goal is to avoid such blockages in the future and gain greater control over international payments.

Russia has been moving toward crypto integration for some time. Regulators have now approved experimental use of cryptocurrency in cross-border payments. In the oil trade with China, Bitcoin could even be used as a payment method.

A Chainalysis report shows Russia, after China and Iran, as the most active user of cryptocurrencies to sustain international trade routes despite economic sanctions.

Last summer, the Russian state approved a law allowing payments with digital currencies in international trade. Additionally, the central bank is examining how crypto investments could be opened up to wealthy individuals and companies.