- Russia plans to develop its own stablecoins after USDT-linked wallets were frozen.
- The move aims to protect Russian digital finance from foreign control.
- Officials suggest pegging new coins to foreign currencies for global trade use.
Following the freezing of $27 million in USDT linked to sanctioned Russian exchange Garantex, Russia’s Finance Ministry has proposed creating domestically controlled stablecoins.
Finance Ministry official Osman Kabaloev emphasized the vulnerability of relying on foreign-issued stablecoins like USDT. These can be frozen at any time.
Moscow Moves Toward Sanction-Proof Digital Currency
The proposed development of Russian stablecoins represents a significant shift in the country’s digital finance strategy. While cryptocurrencies have long been viewed with skepticism by the Russian Central Bank, recent global financial restrictions have forced policymakers to reconsider their stance.
Russia’s central bank has allowed the experimental use of cryptocurrencies in international transactions. However, domestic usage remains prohibited, indicating a controlled and strategic approach to digital currencies. This creates a dual-track policy: innovation abroad, restriction at home.
The focus on stablecoins pegged to foreign currencies may also reflect Russia’s broader ambitions to reduce dependence on the US dollar and euro. Stablecoins could help facilitate cross-border trade with countries such as China, Iran, or members of BRICS. These countries have shown interest in alternative financial systems.
Garantex’s shutdown and rebirth under a new identity illustrate the ongoing cat-and-mouse game between sanctioned entities and global regulators. The Finance Ministry’s move signals a longer-term solution: building tools that aren’t vulnerable to foreign seizure or surveillance.
Russia’s pursuit of its own stablecoins highlights a larger geopolitical trend. Nations seek digital tools to assert monetary independence and sidestep global financial controls.
“The recent blockage makes us think that we need to consider creating internal tools similar to USDT, possibly pegged to other currencies.” — Osman Kabaloev
