Russia’s Finance Ministry Explores Ruble-Backed Stablecoins for Trade

Russia’s Finance Ministry wants to create its stablecoin. This comes after Tether blocked digital wallets linked to the Russian crypto exchange Garantex. The blockage cut off access to around 2.5 billion rubles (about $30 million). Tether froze the wallets after Garantex was sanctioned by the European Union. The U.S. also flagged Garantex for links to sanctioned groups. This raised concerns in Russia about relying on foreign crypto tools. Osman Kabaloev, a senior Finance Ministry official, said the country needs “internal tools” like Tether. He suggested they should develop stablecoins that could be pegged to other currencies.

Domestic Crypto Tools on the Table

The Finance Ministry is now exploring ruble-backed or foreign currency-backed stablecoins. These would be used mainly for international payments. The goal is to protect Russian users and businesses from foreign restrictions.

They have faced many financial sanctions since 2022. Because of this, some Russian companies began using cryptocurrencies for global transactions. Stablecoins like USDT became a popular solution.

But the Garantex freeze highlighted a risk: foreign crypto firms can block access at any time. Now, it is looking for safer, internal alternatives.

The Bank of Russia does not support using crypto for domestic payments. Governor Elvira Nabiullina said the bank remains strict about this rule. However, she admitted that some companies are testing crypto for foreign trade.

Russia allows certain firms to use digital assets in international transactions. This is part of a “regulatory sandbox” where companies can test new tools under government supervision. The goal is to avoid violating current laws while still exploring new tech. So, while stablecoins may not be used by regular people in Russia anytime soon, businesses could benefit from new tools made inside the country.

Why Stablecoins Matter ?

Digital coins that are backed by actual currencies, such as the US dollar or the euro, are known as stablecoins. They help avoid significant currency fluctuations and allow for sending money fast. They are widely used for trading cryptocurrencies and fiat money. According to a recent Bitwise report, $14 trillion worth of stablecoin transactions occurred last year. This demonstrates the significance of stablecoins in international finance. For instance, in recent years, Russia has mainly relied on USDT to manage international transactions. However, to prevent more disruptions, the nation now recognizes the necessity for a domestic solution following the recent freezing of its USDT wallets.

Focus on Financial Independence

Russia wants to reduce its dependence on Western financial tools. Building its stablecoin is one step in that direction. The Finance Ministry has not yet said when such a coin might launch.

The idea is still being studied, and no official plans have been confirmed. But the fact that top officials are talking about it shows it’s a serious option.

As sanctions continue, it is likely to speed up work on financial technologies. A ruble-based stablecoin, or one pegged to foreign currencies, could help Russian firms stay active in global markets, without the risk of sudden blockages.