Russia Proposes Amendments for Stablecoin Use in Foreign Trade

A group of deputies from the Communist Party faction has submitted a bill to the State Duma introducing the concept of a secured stablecoin and permitting its use in foreign trade transactions. The document is published in the parliamentary electronic database.

The amendments are proposed for the law “On Digital Financial Assets” (“On DFA”) and suggest classifying stablecoins backed by gold under this category.

Currently, Russian legislation does not regulate the legal status of “stable coins,” and individuals and legal entities are prohibited from using digital currency for payments. Previously, the Bank of Russia noted that it considers stablecoins as monetary surrogates alongside cryptocurrency.

According to the authors of the bill, their proposed approach would resolve difficulties in conducting cross-border payments resulting from foreign economic activities under geopolitical pressure.

“A gold-backed stablecoin could become a currency for settlements in export deals, without becoming a means of payment for completed work, services rendered, goods supplied, or a means of settlement between individuals within Russia,” the explanatory note states.

The deputies highlighted ongoing negotiations on creating a gold-backed stablecoin for cross-border settlements between Russia and Iran.

In September 2023, the Russian government announced that it is working with the Central Bank on launching cross-border settlements using DFAs and utility digital rights.

In December, the Exved exchange was launched to facilitate cross-border payments for Russian importers and exporters engaged in foreign economic activities.