The Central Bank of Iran is reportedly in discussions with Russia to create a new stablecoin backed by gold. This new token would be used as a means of payment in foreign trade settlements instead of the dollar, the Russian Ruble, or the Iranian Rial. This move could have a significant impact on the gold market, as well as the dollar’s dominance in international trade.
A gold-backed stablecoin would increase demand for gold and could lead to an increase in the price of gold and potentially cause a shift in the current gold market dynamics.
Moreover, the use of a gold-backed stablecoin as a means of payment in foreign trade settlements would also pose a threat to the dollar’s dominance. The dollar is currently widely used in international trade, and a shift towards a gold-backed stablecoin could cause a decrease in demand for the dollar. This could potentially lead to a decrease in the value of the dollar and a shift in the current global currency dynamics.
Furthermore, the move would also be a way for countries like Iran and Russia to bypass the current sanctions imposed on them by the Western countries, and still be able to trade with other countries.
It is worth noting that this move is still in the discussion stage and would only be implemented once cryptocurrencies are fully regulated in Russia. However, the Russian Duma is currently working on a draft amendment to the Digital Financial Assets law to regulate crypto and create a national crypto exchange.
In conclusion, a gold-backed stablecoin could increase demand for gold, pose a threat to the dollar’s dominance in international trade and also be a way for countries like Iran and Russia to bypass the current sanctions imposed on them by the Western countries.