Iran along with Russia are currently exploring the possibilities of a stablecoin backed by gold. Can it bring about an economic system that is new?
All over the world, governments have changed the gold standard to fiat currency in the 20th century in order to offer economic flexibility. But, fiat currency has an unending supply of money and could cause hyperinflation.
The Russian news outlet Vedomosti published the news that Iran and Russia have joined forces to launch”the “token of the Persian Gulf.” It will be a stablecoin which is secured by gold. A further important aspect is that the principal goal of this stablecoin is to function as a means of payment in international trade and not rely on fiat.
Are countries trying to apply the benefits to the gold standard in cryptocurrency?
Gold-Backed Stablecoin To Avoid Sanctions?
Anton Tkachev, a member of the Duma Committee on Information Policy has confirmed talks for the token for the Persian Gulf between Iran and Russia. The official also clarified that the discussion at the state level for the stablecoin backed by gold will be discussed with a lot of enthusiasm when Russia regulates cryptocurrency.
The ongoing conflict between Ukraine and Russia has resulted in a variety of sanctions against Russia and the Russian economy. Russia is also barred from utilizing SWIFT (Society International Interbank Financial Telecommunication) which facilitates an execution service for financial transactions among banks across the globe.
Russia is a country which was once in support of bans on cryptocurrency, is considering legalizingcross-border cryptocurrency payments.
A World CBDC Adoption
Alongside Iran and Russia and many others, other countries are fast approaching accepting the Central Bank’s Digital Currency. It is the Republic of Palau, an island nation in the Pacific Ocean, is exploring the possibility of creating a nation-wide stabilized coin, through cooperation together with Ripple.
Surangel Whipps , Jr. The President of Palau in the course of an interview with Bloomberg said:
“Central Bank Digital Currencies is an idea that was born out from cryptocurrencies along with blockchain technology.
Palau as a whole, doesn’t have an Central bank, and we rely on US dollars as our official currency. When we begin our collaboration with Ripple Our objective is to develop an USD-backed stablecoin that is a first step towards the creation of our custom Central Bank Digital Currency.”
The European Central Bank has also been investigating CDBC. It is believed that the European Commission intends to propose the regulation that will establish an electronic euro by the second quarter of 2023.
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