VEB.RF proposed to issue gold-backed stablecoin

The institute’s analysts argue that economic sanctions will be ineffective against such an asset

22.06.2022 - 07:20

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What’s new? Analysts at the VEB.RF Institute for Research and Expertise have proposed the issuance of a gold-backed stablecoin in Russia. This is reported by RBC with reference to the report “International payments in the context of sanctions: state and prospects”. The asset will be intended for external settlements, including between third countries without Russia’s participation. According to experts, economic sanctions cannot be applied against the “golden ruble,” as the currency rate will be pegged to the rate of gold on the world market.

RBC’s material

What else does the document say? Analysts also suggested creating a national cryptocurrency exchange or implementing a mechanism to work with digital assets on exchanges in friendly countries, which could be used by the largest companies included in the sanctions lists.

In addition, VEB proposed to the Bank of Russia to create a system of international settlements in national digital currencies based on the technologies of the distributed ledger. However, analysts noted that such a decision requires political coordination. The main goal of the project is to create a cheaper and faster system of cross-border payments.

In late May, the Bank of Russia announced the launch of a pilot version of the digital ruble project on real transactions and customers in April 2023. The launch had previously been planned for 2024. The accelerated development is linked to anti-Russian sanctions.

In June, Central Bank Governor Elvira Nabiullina said that the regulator allows the use of cryptocurrencies in international settlements. In this, digital assets should not penetrate the financial system of the Russian Federation and be used within the country as a means of payment. She also added that cryptocurrencies should not be used in organized trades in the Russian Federation because of their high volatility.

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