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Russia’s Finance Ministry calls for a ruble-based stablecoin to reduce reliance on U.S dollar-backed stablecoins.
Russia, a member of the BRICS economic alliance, has been vocal on the concept of de-dollarization as a way of minimizing U.S dominance on the global economy. In addition to U.S. sanctions over the Russia-Ukraine War, the country also saw its wallets holding over $30 million in USDT frozen.
As a result, Osman Kabaloev, a senior officer in the Ministry of Finance, has proposed a ruble-pegged stablecoin in a move to strengthen Russia’s financial independence. However, the Bank of Russia opposes the idea of private stablecoins while promoting its digital ruble.
What does this mean for Russia?
The recent development in Russia’s Ministry of Finance is a step toward wider crypto adoption in its regulated crypto space. The growing split between central regulators and advocates of innovation could open more opportunities for crypto enthusiasts in Russia.
Similarly, this comes a challenge to Russia’s crypto strategy as the country minimizes exposure to western financial control.
