Stablecoins: A New Frontier
Russia is exploring the use of stablecoins for international payments to bypass sanctions and economic difficulties. Stablecoins are cryptocurrencies pegged to the value of assets like fiat currencies or gold, offering a combination of digital asset efficiency and financial stability.
Russia’s Move to Stablecoins
The Russian government sees stablecoins as a promising tool for cross-border transactions. Deputy Governor Alexei Guznov of the Bank of Russia is leading the effort to develop regulatory measures for stablecoin use. The goal is to create a legal framework for stablecoin adoption in international payments.
Legal Framework and Implementation
The Bank of Russia is working to avoid legal issues related to sanctions and international finance laws. The regulation of stablecoins is expected to impact Russian businesses engaged in international trade, particularly with Asian countries.
EU’s Role in Stablecoin Growth
The EU’s Markets in Crypto Assets (MiCA) law highlights the growing importance of stablecoins in Europe. According to Circle’s Patrick Hansen, EUR-stablecoins account for 1.1% of Euro-denominated crypto transactions, compared to 90% for USD-stablecoins. Hansen believes the MiCA law will increase the volume and liquidity of EUR-stablecoins.
