- Russia is considering creating its stablecoin following the freeze of USDT wallets
- Officials aim to achieve financial independence in a context of economic isolation
Russia is considering creating its stablecoin following the freeze of USDT wallets linked to Russian organizations. More specifically, Tether, the issuer of USDT, froze wallets on the Russian crypto exchange Garantex, blocking access to more than 2.5 billion rubles (approximately 30 million dollars).
Details of Initiatives Related to Alternative Currencies for Russia
According to Benzinga, a senior official from the Russian Ministry of Finance indicated that such an initiative could help maintain financial autonomy amid tightening restrictions from Western sanctions.
More specifically, Tether, the issuer of USDT, froze wallets on the Russian crypto exchange Garantex, blocking access to more than 2.5 billion rubles (approximately 30 million dollars).
The freeze was initiated shortly after Garantex was sanctioned by the European Union in early March, which led to suspending the platform’s operations.
The Deputy Head of the Ministry’s Financial Policy Department, Osman Kabaloev, stated on Wednesday that the incident highlights the need to develop internal alternatives to stablecoins.
“The recent freeze makes us think about the need to create domestic instruments similar to USDT, possibly pegged to other currencies.”
The point is that although stablecoins do not go through SWIFT or similar payment systems — which are currently problematic for Russia — they are still pegged to the dollar, which creates additional difficulties for international trade under ongoing sanctions. And yes, there are some pro-crypto regulations for mining companies in Russia, and they plan some investments in required infrastructure.
But this is not wide crypto adoption, as we can see in the US, and the Central Bank still opposes using cryptocurrencies as a means of payment within the country. All their initiatives now are focused only on the government’s international trades, not regular users.
The head of the Central Bank, Elvira Nabiullina, confirmed that some Russian companies are currently participating in these trials as part of a broader experimental program.
Conclusion
The initiative to create a Russian stablecoin hints at the country’s intent to strengthen financial independence and reduce reliance on Western financial instruments, the same can be seen with Europe. Of course, there are completely different reasons that make them move this way, but the development of such a tool could become an important step toward ensuring the resilience of the Russian economy under international sanctions and restrictions.
Stay tuned for updates, and be adaptive in the rapidly evolving technology, blockchain, and crypto landscape.
