Iran and Russia want to issue new stablecoin backed by gold

[DrBeer]

Iran and Russia are adopting this approach to strengthen their two countries. Russia and Iran will launch a cryptocurrency to replace the US dollar for payments and the value of this cryptocurrency called a stablecoin is less volatile in price than digital assets such as the US dollar or gold and will protect investors from large falls in the broader crypto market. Iran is also collaborating with Russia to create a Persian gulf token that will be used as a means of payment in international trade.

Are you serious now? Was it not humor?
Please - explain what kind of stability and stable value does this asset have? Provided that both countries are under sanctions. With a fairly degraded economy, and a complete lack of prospects. Well, let Iran somehow hold on even more or less, but in Russia the economy, the army and everything else turned out to be a dummy and a fake!
I'm sure the best name for their coin would be "Stable" Fake Coin

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[Argoo]

Iran is now the main military ally of the Russian Federation, both terrorist countries exchange military technologies and weapons, conduct joint military operations. In this regard, very interesting events took place there on the night of January 28-29. It became known about a number of powerful explosions in Iran. There was information that key military factories were attacked by drones. Also, more than five Iranian military bases were bombed, and there is even a chance that the infamous factory that produced the very "shaheeds" with which the invaders terrorize the Ukrainians was destroyed. Also, some media have spread information that Israel has launched a special military operation on the territory of Iran, but there is no official confirmation yet.

It is reported that numerous cities in Iran itself were under attack - Isfahan, where, among others, the objects of the nuclear program of the Iranian dictatorship, Tabriz, Rasht, Khoy, Hamadan, Keredzh and others are located. There were also attacks on government buildings in Tehran.
A fire broke out at an oil refinery in the Shahid Salimi area. Military bases, weapons factories and oil refineries are on fire (air base in Hamadan, oil refineries in Tabriz and Azarshahri, an ammunition factory in Isfahan (a city 340 km south of the capital of Iran). These factories could also produce Shahed drones, one of the sites located at the Badr Air Base in Isfahan Province, Isfahan is also home to factories involved in Iran's nuclear program.

Some Twitter users say the factory produces warheads for the Shahed kamikaze drones that Iran is supplying to Russia for attacks in Ukraine.

Israel may be behind the numerous strikes on Iranian military facilities on the night of January 28-29. Israel's goal is allegedly the complete destruction of the Iranian military industry. At the same time, Israel has not officially commented on these assumptions. However, right now the Israeli army has begun bringing troops into the cities of Shechem and Beit Ummar (Judea and Samaria). The goal is to eliminate the infrastructure and manpower of local terrorist groups controlled by Iran.

“Tonight we decided to attack terrorist organizations. Our response will be strong, fast and accurate. Whoever wants to harm us, we will harm him too,” Israeli Prime Minister Benjamin Netanyahu allegedly said.

It is noteworthy that Iran, armed with the latest Russian air defense systems, was unable to repulse the attack.

Opposition and protesters have become more active. Shooting began on the streets of Iranian cities, local media reported. In the city of Javanrud, rebels storm police stations and IRGC bases.

[pooya87]

It became known about a number of powerful explosions in Iran.

You mean the magnitude 4.7 earthquake affecting Turkey, Iran, Armenia and Azerbaijan? lol
Iran's region includes Khoy, Tabriz, Rasht, etc.

Also, more than five Iranian military bases were bombed, and there is even a chance that the infamous factory that produced the very "shaheeds"

It is Shahed not Shaheed.
It is also not manufactured in middle of a city of Isfahan.
It also was one structure with civilians in it not 5 and it was a terrorist attack using tiny drones (Quadcopter) which interestingly Zelenskly got too excited about and showed support for the terrorists before finding out that it had failed.

It is really eye opening to know where Ukraine stands when it comes to terrorist organizations.
It also gives Iran the internationally supported retaliation. The US bases in Syria were already bombed last week leaving it with 14 casualties, and the company building the Quadcopter is the next legitimate target alongside the terrorist organizations involved in the attack and those who showed support

[cabron]

Iran and Russia just linked their banking system according to Reuters. This is basically linking thier own messaging system. China and Russia have already linked thier MIR and UnionPay so this will enable them to work still amid the sanctions. If Saudis are going to join, they will really be unstoppable.

It's still unsure how the stablecoin will work for them but it must be why central banks are buying up gold since.

source https://www.reuters.com/business/finance/iran-russia-link-banking-systems-amid-western-sanction-2023-01-30/

[Moeda]

Iran and russia want to issue a stablecoin?! This world is becoming crazier by the day.
~ ....

Actually, all countries today cannot refuse digital developments, especially regarding crypto. They will try to go through stable coins, because it is very easy to control the value. However, the government will not accept existing blockchain systems, such as the Ethereum blockchain, BNB and others as a pathway for them to develop crypto stable coins. Because they are worried that one day it will be controlled by certain parties. Then the alternative is for them to develop their own blockchain to develop crypto.
I think it's good, we also don't expect everyone to be on the blockchain that already exists today. With so many blockchains being developed, the competition will be even tougher, and they will compete to present the best.

[The Sceptical Chymist]

Iran and russia want to issue a stablecoin?! This world is becoming crazier by the day.

Yeah, good luck with that--and I don't know when this general insanity is going to end, but I keep telling myself that it has to one day.

Digitizing gold has been done before, more than a decade ago if I'm not mistaken, and there was a company that got busted for not having enough physical gold to back the digital version....I wish I could remember the details, but I think it was right after the internet boom that went bust in April of 2000.

I couldn't care less what Russia or Iran do as far as making a coin backed by gold; what's concerning to me is how a lot of countries seem to be co-opting the cryptocurrency revolution and in the process stray so fucking far from what crypto was supposed to be about in the first place.  Hopefully people will understand that a CBDC is a much different beast than something like bitcoin.  People here on the forum sure do, but I have my doubts about average folks who only know about crypto from what the media tells them.

Ugh.  The future has a dark, dark cloud hanging over its head.

[DrBeer]

Iran and russia want to issue a stablecoin?! This world is becoming crazier by the day.

Yeah, good luck with that--and I don't know when this general insanity is going to end, but I keep telling myself that it has to one day.

Digitizing gold has been done before, more than a decade ago if I'm not mistaken, and there was a company that got busted for not having enough physical gold to back the digital version....I wish I could remember the details, but I think it was right after the internet boom that went bust in April of 2000.

I couldn't care less what Russia or Iran do as far as making a coin backed by gold; what's concerning to me is how a lot of countries seem to be co-opting the cryptocurrency revolution and in the process stray so fucking far from what crypto was supposed to be about in the first place.  Hopefully people will understand that a CBDC is a much different beast than something like bitcoin.  People here on the forum sure do, but I have my doubts about average folks who only know about crypto from what the media tells them.

Ugh.  The future has a dark, dark cloud hanging over its head.

Do not drive yourself into depression because of the attempts of two rogue states, terrorist states, to do something populist. It won't make any sense anyway, and the whole world will still laugh at them. Moreover, there are not many of these modes left in this world
The war unleashed by Russian terrorists in Ukraine, this time rallied both Europe and the whole world. Ukraine has shown that such a huge monster as terrorist Russia can be resisted, answered, and won against this monster. You just need to unite, help and the colossus on shitty legs will collapse!

[pooya87]

It's still unsure how the stablecoin will work for them but it must be why central banks are buying up gold since.

I sincerely hope they don't end up pushing this domestically because it has a high chance of failing and it is pointless anyways. But on the other hand if it is used internationally and if it is backed by gold and/or energy that would be fantastic. In that case it would have the potential to easily replace USD in international trades since that is exactly what dollar through SWIFT etc is, a CBDC that is not backed by anything except that this new one would be backed by a lot.

However, the government will not accept existing blockchain systems, such as the Ethereum blockchain, BNB and others as a pathway for them to develop crypto stable coins. Because they are worried that one day it will be controlled by certain parties. Then the alternative is for them to develop their own blockchain to develop crypto.

What's being created here seems to be stand alone but I wouldn't be so sure about governments always being so wise as to not use existing shitcoin chains. I've even heard about possibility of using Tether (aka one of the most centralized altcoins) even though it doesn't seem to have actually happened but it shows how little some governments know.

[Andrija Branislav]

If you pay attention to the implicit message there, I mean Stablecoin is not intended to be used as an investment vehicle; instead, they are designed to be used like cash and to mitigate the extreme price volatility of cryptocurrencies. They also have other uses, including spending, transferring value, or redeeming it for goods and services.

[Dickiy]

Iran and Russia just linked their banking system according to Reuters. This is basically linking thier own messaging system. China and Russia have already linked thier MIR and UnionPay so this will enable them to work still amid the sanctions. If Saudis are going to join, they will really be unstoppable.

It's still unsure how the stablecoin will work for them but it must be why central banks are buying up gold since.

source https://www.reuters.com/business/finance/iran-russia-link-banking-systems-amid-western-sanction-2023-01-30/

The gold that they bought is probably for underlaying the stable coin that they are developing to gain the full trust of users so that their crypto can be trusted in value because they have gold in their safe as the guarantor. Where is this global economy with new technologies and new innovations in the financial and banking system, it is clear that they are completely leaving the United States dollar in their global transactions.
Yes, even though we haven't been able to see how the Stablecoin they are developing works, but so far it's been pretty clear.

[Captain Corporate]

Considering they are getting trouble on buying gold or basically just taking physical gold into the nation, its quite possible that these two could get a better life if they focus on making a good amount profit then it would be awesome for them. However, sanctions and all that will cause a lot of trouble and I am guessing that it will be pretty much something that will hurt them even more. I would definitely consider buying it just a bit to make sure I am involved but I think it will be quite tough to follow up later on and would like to see where it goes

[Fortify]

Iran and russia want to issue a stablecoin?! This world is becoming crazier by the day.

I would guess their first kneejerk reaction was to simply use gold. Then they realized if they digitized it. They could simply move digital funds from one account to another account. Which is easier and more efficient than shipping heavy piles of gold across long distances. But then who would cover development costs of what could easily become a multi million dollar project? Then they realized, if they used free open source code from crypto projects, they wouldn't have to pay software development costs and would only need servers to run it and personnel to maintain it.

So it seems that crypto and stablecoins may become a natural progression for corporations and nations of the world who are attempting to solve basic and fundamental problems of economy. Such as developing and deploying financial systems to facilitate transactions denominated in gold. Rather than starting from zero and building systems upwards to achieve basic and fundamental financial tasks.

It's not crazy from their perspective. They've been cut off from world trade because anyone who trades with them is almost possibly going to incur the wrath of trade sanctions from some of the richest countries in the world. A multi million dollar cost is a pittance if it allowed them to open up a new trade route that could result in hundreds of millions, billions or ultimately trillions worth of trade. Unfortunately they both suffer from a huge deficit of trust, even between themselves, that bills will ultimately get settled or that their wider economy is well managed not to implode. That is the underlying problem that a cryptocurrency will not solve, the same incompetent people are still in charge and don't want to change.

[pooya87]

the internationally supported retaliation ... the company building the Quadcopter [drone] is the next legitimate target alongside the terrorist organizations involved in the attack and those who showed support

By complete accident the Edge Autonomy factory in Latvia which is a US owned drone manufacturer that also exports to Ukraine blew up and is still burning.

[Gyfts]

Some experts suggest other stuff like energy (including fossil fuels). We know that world will continue needing fossil fuels despite all the talk of green energies since they are used in a lot of products (they are not just for burning). For example a barrel of oil could be always 100 Ruble or a 100 Rial, etc.

But unfortunately I don't see anybody paying attention to this, they just stick to gold which doesn't have the utility that energy has.

How is it even possible to use fossil fuels as currency? Storage itself is complicated and is expensive. Storing a barrel of crude oil for a month costs anywhere from $0.20 to $1.00. And crude oil hasn't proved effective against inflation. Check the prices we had in 2009-14 and now. Volatility is another concern. In case of gold, it is easier to store and has very low volatility. And although green energy has failed to replace fossil fuels so far, I have noticed a sharp increase in electric vehicles during the past few years. The replacement is picking up pace.

You could theoretically have a stablecoin pegged to oil reserves. Of course, it'd be useless as all other stablecoins are because attempting to verify oil reserves is near impossible. Even in the case of gold, you're still required to entrust the issuer that they have liquidity. If the liquidity doesn't exist, the stablecoin collapses. Iran and Russia's stablecoin would be just as reliable as the Russian and Iranian government. For obvious reasons, they wouldn't be reliable at all because they're some of the most corrupt and unstable governments in the world.

[darkangel11]

I'd support such currency if it was launched by other countries.

the internationally supported retaliation ... the company building the Quadcopter [drone] is the next legitimate target alongside the terrorist organizations involved in the attack and those who showed support

By complete accident the Edge Autonomy factory in Latvia which is a US owned drone manufacturer that also exports to Ukraine blew up and is still burning.

There were a few similar "accidents" in Russia too. There's even a wiki page for "mystery fires" that attacked Russian buildings in the last 12 months.
https://en.wikipedia.org/wiki/2022%E2%80%932023_Russian_mystery_fires

When Moskva blew up the innitial media reports were that "a fire broke out on the ship"

[o48o]

I guess that could technically work but that also signals to their people that they wouldn't have any trust on their own national Fiat currencies as they didn't choose cbdc road instead. And i think that they want to their citizens not to worry and believe their own currency is doing just fine.

And obviously they And even though they wouldn't need to comply with western regulations, they would need to comply with their own. And i have hard time believing that Russia and Iran would find any common ground with that.

[lepbagong]

I guess that could technically work but that also signals to their people that they wouldn't have any trust on their own national Fiat currencies as they didn't choose cbdc road instead. And i think that they want to their citizens not to worry and believe their own currency is doing just fine.

And obviously they And even though they wouldn't need to comply with western regulations, they would need to comply with their own. And i have hard time believing that Russia and Iran would find any common ground with that.

if you look at what Russia and Iran have done so far, I am as optimistic as you that they will be able to do that, but everything will be returned to them later.
because so far Russia itself is still struggling with regulations that have not been properly resolved regarding the digital market, of course this problem must be resolved and is there no problem in Iran itself? before unifying the perception between them. so the discourse can be done but it still has a long way to go.

[Pejoh Asu]

After the success of Tether and stable coin, now there are more and more projects using the stable coin concept, but there are many stable coin projects that fail for various reasons, and if russia and iran officially make a stable coin project, of course it will be a good thing, official guarantee from the country will make users no longer hesitate to store assets in the coin stable.

[pooya87]

There were a few similar "accidents" in Russia too. There's even a wiki page for "mystery fires" that attacked Russian buildings in the last 12 months.
https://en.wikipedia.org/wiki/2022%E2%80%932023_Russian_mystery_fires

When Moskva blew up the innitial media reports were that "a fire broke out on the ship"

That's different though. Russia is at war with NATO which means such "incidents" are expected. However, Iran is nowhere in this war but they (mainly US) is desperately trying to pull Iran into this war which is why we saw the failed terrorist attack in Isfahan, Iran which out of nowhere Ukraine showed support for!
It won't work though because Iran eliminates threats at the source (US) not the proxy (Ukraine).

This is also one of the reasons why the Western mainstream media keeps lying about Iranian missiles, etc. being used by Russia.

[justdimin]

It's not crazy from their perspective. They've been cut off from world trade because anyone who trades with them is almost possibly going to incur the wrath of trade sanctions from some of the richest countries in the world. A multi million dollar cost is a pittance if it allowed them to open up a new trade route that could result in hundreds of millions, billions or ultimately trillions worth of trade. Unfortunately they both suffer from a huge deficit of trust, even between themselves, that bills will ultimately get settled or that their wider economy is well managed not to implode. That is the underlying problem that a cryptocurrency will not solve, the same incompetent people are still in charge and don't want to change.

I agree that it is something that makes sense for them to build it, but that doesn't change the fact that it will become a trouble to use these stablecoins as well, if you are a company that can't deal with Russia or Iran because you are afraid of the sanctions, you can't start trading with them just because there is a stable coin neither, if it was a wrong thing to do or something you were afraid of doing, it will stay being something that you are afraid of and that won't change, it will be something that you will keep fearing anyway.

That's at least something we should be aware of and that's why this shouldn't be created or even if it was, there shouldn't be much hope for it.