Russia Might Enter the Stablecoin Market After Wallets Connected to Russian Users and Holding USDT Were Frozen Last Month

A senior official from Russia's Finance Ministry has called for the development of stablecoins linked to foreign currencies after wallets connected to Russian users and holding USDT were frozen last month.

A senior official from Russia’s Finance Ministry has called for the development of stablecoins linked to foreign currencies following the freezing of wallets connected to Russian users and holding USDT last month.

The move comes as US-backed stablecoins, such as Tether and USD Coin, currently dominate global liquidity and Washington moves closer to introducing new regulations for the sector.

The heating pro-regulatory shift is drawing in new projects targeting the US market. Russia, on the other hand, is facing increasingly tighter financial restrictions and sees a digital alternative as neccessary.

As such, Moscow might enter the stablecoin market. With the US’ own economic and geopolitical interests coming to the forefront, perhaps this would be the perfect time for Russia to join the competition.

The US dollar is facing pressure as a result of the country’s ongoing tariffs. As such, several nations heavily hit by the tariffs are considering de-dollarization, especially in Eastern Europe and Central Asia.

A ruble-backed token could reduce the region’s reliance on USDT and USDC, which both track the US dollar. Such a shift would support Russia’s long-term effort to move away from dollar-based trade.

Earlier this year, Elvira Nabiullina, head of Russia’s central bank, said that the country remains opposed to using cryptocurrencies for domestic payments.

However, she confirmed that several Russian firms are testing international cryptocurrency transfers as part of a government-led trial.

The country has explored stablecoin initiatives before. In 2023, it discussed a gold-backed digital currency with Iran, intended for cross-border use and positioned as an alternative to the dollar.

As BeInCrypto previously reported, Russian businesses have been using Bitcoin and other cryptocurrencies for months to conduct international transactions amid difficulties with the SWIFT system and foreign exchange reserves.

The urgency of Russia’s stablecoin push increased after Tether, the issuer of USDT, announced the blocking of wallets on the Garantex exchange, freezing assets worth more than 2.5 billion rubles ($30 million). The incident occurred shortly after Garantex was hit with European Union sanctions.

At the same time, Kyrgyzstan is making moves of its own. The country has announced plans to build a crypto hub, supported by Binance founder Changpeng Zhao.

A central part of the initiative is A7A5, a stablecoin tied to the ruble that aims to serve emerging markets.