Cryptocurrency Move From Russia After Freezing of USDTs on Russian Exchanges
The post Cryptocurrency Move From Russia After Freezing of USDTs on Russian Exchanges appeared on BitcoinEthereumNews.com.
Russia may soon develop its own stablecoin pegged to non-dollar currencies following a major crackdown on digital assets linked to the country. The suggestion comes from Osman Kabaloev, Deputy Director of the Finance Ministry’s Financial Policy Department, following the freezing of Russian-linked wallets holding the popular USDT stablecoin last month. A freeze initiated by Tether, the company behind USDT, has affected digital wallets on Russian cryptocurrency exchange Garantex. More than 2.5 billion rubles (around $30 million) were blocked, forcing the exchange to cease operations shortly after being hit by EU sanctions. “The recent blocking makes us think that we should consider creating internal instruments similar to USDT, possibly pegged to other currencies,” Kabaloev said today, according to Reuters. Stablecoins, digital currencies typically pegged to fiat currencies like the U.S. dollar, have gained significant traction in recent years because they offer a relatively stable means of transferring value between cryptocurrencies or converting them into cash. But the dominance of dollar-denominated stablecoins like USDT poses vulnerabilities for countries facing Western sanctions. Russia has cautiously allowed the experimental use of cryptocurrencies for international transactions, especially as traditional payment methods have become increasingly restricted. USDT was widely used by Russian firms for cross-border payments before the recent restrictions. While the Central Bank of Russia continues to oppose the use of cryptocurrencies for domestic payments, Central Bank Governor Elvira Nabiullina has admitted that Russian companies are actively testing international crypto payments under a pilot framework. The move to develop a state-backed or internally managed stablecoin, possibly pegged to currencies such as the Chinese yuan, could be a key step in Russia’s strategy to insulate itself from dollar-centric financial infrastructure amid ongoing geopolitical tensions. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/cryptocurrency-move-from-russia-after-freezing-of-usdts-on-russian-exchanges/
Filed under: News - @ April 17, 2025 7:21 am