New Stablecoins to Be Developed by Exchanges
Two exchanges, set to operate in different Russian cities, are planning to develop a stablecoin linked to the Chinese Renminbi (RMB) Yuan and the BRICS currency basket. This stablecoin will be pegged at a 1:1 ratio to ensure price stability.
According to the report, both exchanges will function under an experimental framework. The platforms aim to facilitate foreign economic activities, particularly by incorporating digital payments for trade settlements.
Motivation for the Initiative
Russia has been actively seeking ways to circumvent global sanctions, particularly those imposed by the United States, which have restricted the country's access to the SWIFT interbank messaging system.
The creation of these two new exchanges and a stablecoin tied to the Chinese Yuan and the BRICS currency basket represents Russia's latest effort to sustain its economy.
Additionally, the new crypto exchanges and the stablecoin are expected to enhance economic activities among BRICS nations—Brazil, Russia, India, China, and South Africa.
Previously, these countries have focused on moving away from using the U.S. Dollar (USD) for trade settlements. The introduction of the stablecoin and exchanges could streamline digital payments among BRICS members, particularly benefiting Russia. However, experts caution that the project could face substantial challenges and may still be vulnerable to international sanctions.
Russia Moves to Legalize Crypto Mining
Meanwhile, Russia has been increasingly embracing blockchain technology and cryptocurrencies. Recently, President Vladimir Putin signed a law legalizing crypto mining in Russia.
This new law recognizes crypto mining as a legitimate business activity and mandates that Russian legal entities register with the government to mine digital assets.
Individual miners, however, are exempt from registration if they operate within specified energy consumption limits.
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