Russia is considering developing its own stablecoins following the freezing of Russia-linked digital wallets holding the popular USDT stablecoin by Tether, the issuer of USDT, amid Western sanctions.
Osman Kabaloev, deputy director of the Financial Policy Department at Russia’s Finance Ministry, stated that the recent blocking of these wallets has exposed risks associated with reliance on foreign-issued stablecoins and prompted the need for domestic alternatives potentially pegged to other currencies.
The move comes after the EU sanctioned Garantex, a major Russian crypto exchange, which led Tether to freeze wallets on its platform holding over 2.5 billion rubles (around $30 million) in USDT, forcing the exchange to suspend operations. The US Department of Justice also froze Garantex’s domains due to alleged involvement in laundering criminal proceeds, further complicating Russia’s access to foreign stablecoins.
Russian regulators have allowed experimental use of cryptocurrencies for international transactions, although domestic use remains restricted. The creation of homegrown stablecoins aims to reduce dependence on foreign digital assets controlled by companies subject to Western sanctions and regulatory actions. This initiative aligns with Russia’s broader efforts to mitigate the impact of sanctions, including exploring the digital ruble and other crypto strategies.
Russia’s Finance Ministry is actively exploring the development of stablecoins that could serve as domestic, stable digital currencies to support cross-border payments and reduce vulnerability to foreign-controlled crypto infrastructure disruptions.
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