The Finance Ministry of Russia is considering the creation of domestic stablecoins pegged to foreign currencies after access to Tether’s USDT was restricted for wallets linked to the sanctioned Russian exchange Garantex. Osman Kabaloev, deputy head of the ministry’s financial policy department, suggested the development of internal stablecoins similar to USDT, following the blocking of digital wallets on Garantex, cutting off access to over 2.5 billion roubles. This move comes as stablecoins have become essential tools for crypto investors, with transaction volumes reaching nearly $14 trillion last year, surpassing Visa’s transaction volume.
Despite Russia maintaining a strict stance on using crypto for retail payments, the limited regulatory framework has allowed firms to experiment with crypto-based settlement systems for international trade. The Finance Ministry’s evaluation of stablecoins indicates a shift towards developing sovereign or semi-sovereign tools for cross-border value transfer. While specifics on the stablecoin design or implementation timeline were not disclosed, it is suggested that the Ministry may be open to stablecoins pegged to foreign currencies such as the US dollar.
This shift in strategy also aligns with Bank of Russia Governor Elvira Nabiullina’s resistance to domestic crypto circulation while acknowledging that Russian firms are actively exploring international crypto payment solutions within the regulatory sandbox. The move towards developing stablecoins comes amid broader efforts to increase Russia’s financial autonomy and reduce reliance on Western financial infrastructure. Creating a ruble-independent stablecoin tied to alternative foreign currencies could provide Russian firms with a controlled and internally governed method for accessing global liquidity.
While the Russian Finance Ministry has not committed to formal stablecoin issuance, the proposal reflects the growing attention among Russian institutions to the operational risks associated with foreign-controlled crypto instruments in an increasingly fragmented global payments environment. As Russia explores the possibility of creating domestic stablecoins, it signifies a continued trend towards exploring alternatives to traditional financial systems, especially in light of recent restrictions on access to international stablecoins like USDT. This move could potentially offer Russian firms greater security and control over cross-border transactions in the face of escalating geopolitical tensions.
