Russia is urged to develop its own stablecoins, said a top finance official on Wednesday, following the freezing of USDT wallets linked to the nation, which disrupted digital transactions and highlighted fears of dependence on stablecoins issued abroad. Osman Kabaloev, the deputy head of the Financial Policy Department at the Finance Ministry, emphasized the necessity for Russia to explore domestic alternatives to widely used stablecoins like USDT, as reported by Reuters.
### Exploring Domestic Stablecoin Solutions Amid International Sanctions
Kabaloev’s remarks come in the wake of actions where the issuer of USDT, Tether, suspended wallets on the Russian crypto exchange Garantex, holding substantial amounts in the stablecoin. This decision was influenced by new European Union sanctions, prompting Garantex to halt its operations earlier.
Stablecoins, typically linked to the US dollar or other fiat currencies, have become vital for crypto trading and cross-border payments due to their stability and low volatility. They are particularly valuable in regions affected by financial sanctions or restrictions. The popularity of USDT among Russian companies for international dealings has surged as global payment system access has become more restricted due to Western sanctions.
The push for the creation of national stablecoins is a reflection of growing concerns within Russia regarding the reliance on digital assets overseen by foreign entities. Tether has stated its compliance with global regulatory standards, including sanctions enforcement, leading to similar wallet suspensions in various locales.
“Russia considers launching its own stablecoins in response to foreign sanctions and reliance on external digital assets. #DigitalCurrency #Stablecoins #Russia”
