Russia’s Finance Ministry is exploring the possibility of creating domestic stablecoins pegged to foreign currencies following restrictions on access to Tether’s USDT for wallets associated with the sanctioned Russian exchange Garantex. Osman Kabaloev, deputy head of the ministry’s financial policy department, mentioned that Russian authorities are contemplating the development of internal tools similar to USDT, hinting at the potential creation of their stablecoin.
The move comes after digital wallets on Garantex were blocked, resulting in the loss of access to over 2.5 billion roubles ($30.12 million). The restriction on Russia’s access to Tether came after the company froze assets linked to the platform following EU sanctions against Garantex. The exchange revealed the freeze on March 6, leading to the suspension of operations as it could no longer facilitate user redemptions.
Stablecoins have become indispensable for crypto investors seeking to facilitate transactions between digital assets and traditional currencies. According to a recent Bitwise report, stablecoin transaction volume reached nearly $14 trillion last year, surpassing Visa’s transaction volume for the first time in a yearly timeframe.
Prior to the recent restrictions, Russian companies widely used USDT for international transactions due to mounting obstacles in accessing the global financial system.
Russian regulators have maintained a stringent stance on the use of crypto in the domestic economy, particularly for retail payments. However, a lack of a comprehensive regulatory framework has allowed companies to experiment with crypto-based settlement systems for international trade to mitigate the impact of Western sanctions. The Finance Ministry’s contemplation of stablecoins signifies a continued exploration of such alternatives.
Kabaloev’s statements indicate a shift towards developing sovereign or semi-sovereign tools for cross-border value transfer. Although the Finance Ministry did not disclose a specific design or implementation timeline, reports suggest openness to stablecoins pegged to the US dollar and other foreign currencies.
Meanwhile, Bank of Russia Governor Elvira Nabiullina reiterated the central bank’s opposition to domestic crypto circulation but acknowledged that Russian companies are actively testing international crypto payment solutions within the regulatory sandbox.
This new approach aligns with broader efforts to enhance Russia’s financial independence and reduce dependence on Western financial infrastructure. By creating a ruble-independent stablecoin linked to alternative foreign currencies, Russian firms could have a controlled and internally managed method for accessing global liquidity.
While the Russian Finance Ministry has not committed to issuing stablecoins formally, the proposal underscores the increasing awareness among Russian institutions regarding the operational risks associated with foreign-controlled crypto instruments in an increasingly fragmented global payments landscape.