Russia is considering creating its own stablecoin to avoid sanctions

Russia is considering creating its own stablecoin following the freeze of USDT wallets linked to Russian organizations.

Russia is considering creating its own stablecoin following the freezing of several USDT wallets linked to Russian organizations, according to a report by Benzinga.

The report, which was published on Wednesday, stated that the initiative could help maintain financial autonomy amid tightening restrictions from Western sanctions.

Earlier this year, Tether, the issuer of USDT, froze wallets on the Russian crypto exchange Garantex, blocking access to more than 2.5 billion rubles (approximately 30 million dollars).

The freeze was announced shortly after Garantex was sanctioned by the European Union in early March, which led to suspending the platform’s operations.

Speaking at a Russian Finance Ministry event on Wednesday, the Deputy Head of the Ministry’s Financial Policy Department, Osman Kabaloev, said that the incident highlights the need to develop internal alternatives to stablecoins.

“The recent freeze makes us think about the need to create domestic instruments similar to USDT, possibly pegged to other currencies,” he said.

The official added that although stablecoins do not go through SWIFT or similar payment systems, which are currently problematic for Russia, they are still pegged to the dollar, which creates additional difficulties for international trade under ongoing sanctions.

And yes, there are some pro-crypto regulations for mining companies in Russia, and they plan some investments in required infrastructure.

But this is not wide crypto adoption, as we can see in the US, and the Central Bank still opposes using cryptocurrencies as a means of payment within the country. All their initiatives now are focused only on the government’s international trades, not regular users.

The head of the Central Bank, Elvira Nabiullina, confirmed that some Russian companies are currently participating in these trials as part of a broader experimental program.

The initiative to create a Russian stablecoin is part of a broader effort by the country to strengthen its financial independence and reduce its reliance on Western financial institutions.

Earlier this year, the Russian Central Bank announced that it was planning to launch its own digital currency, which would be used for both domestic and international payments.

The bank also stated that it was working on a new financial messaging system, which would be an alternative to SWIFT, the global payments network that is currently used by banks in over 200 countries and territories.

The development of such a tool could become an important step toward ensuring the resilience of the Russian economy under international sanctions and restrictions.