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The finance ministry in Moscow is now considering the creation of a Russian cryptocurrency similar to the U.S. dollar-pegged Tether (USDT), local media reported. The proposal to issue a domestic stablecoin comes after last month Tether blocked billions of rubles’ worth of crypto assets in wallets on a sanctioned Russian exchange. Finance ministry suggests launching Russian stablecoin The Ministry of Finance of the Russian Federation (Minfin) is recognizing the need for a stablecoin other than those linked to the U.S. currency, the Tass news agency reported. Speaking at a banking forum, a high-ranking official revealed that the ministry is now mulling over the launch of a coin similar to the USDT but pegged to a different fiat. According to Osman Kabaloev, deputy head of the Minfin’s Financial Policy Department, recent developments have shown that stablecoins like Tether “can be dangerous” for Russia. “This suggests you need to look at the creation of internal instruments such as USDT, possibly tied to other currencies,” he elaborated during a discussion devoted to the payments industry. “We have no restrictions on the use of stablecoins in the experimental legal regime (ELR),” Kabaloev added in his address to participants in the “Banking system and national economy” conference. He was referring to Russia’s newly established legal framework for cryptocurrency transactions which allows Russian companies to use digital coins for settlements with foreign trading partners, bypassing international financial restrictions. The free circulation of Bitcoin and the like in the country’s economy, outside the ELR, has not been legalized yet, with the Central Bank of Russia categorically rejecting such proposals. Russia’s stablecoin initiative comes after Garantex Tether wallet freeze The Russian finance ministry has pitched the idea for a domestic stablecoin in the wake of the freezing of around 2.5 billion rubles of USDT held in Russia-linked accounts…

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Filed under: News - @ April 18, 2025 6:28 am