Topic: Iran and Russia want to issue new stablecoin backed by gold - page 5. (Read 1034 times)

Russia and Iran are countries with similar economic strengths. They are rich in petroleum and mineral resources. In order for this initiative be successful, they need the backing of countries which are consumers of these natural resources (China, EU, US, India, Japan.etc). India doesn't want to antagonize the Western bloc and EU/Japan/US are part of that bloc. So that leaves China as the sole superpower which can strengthen this initiative. Do they want to antagonize EU/US? They can do that, albeit with serious consequences.

Of course Russia can do it on its own but usually when something is done between two countries, it's done by both of them and yeah, it also strengthens bonds between them. Also, Russia wants to show the world that it doesn't need the west and it can manage quite well with countries like Iran, India, China, etc. But I highly doubt that!

And who cares? Who gives a shit? It will only be used between two countries, Russia and Iran. If they trust each-other, they can keep the business, otherwise, it's their issue. It would be beneficial for the world if their business relationship fails.
This man has the biggest balls in Russia.
Пoддepжy или пoддepживaю? Гoвopитe пpямo, Cepгeй Eвгeньeвич

The reason why Russia does not do this job alone is the embargoes from the west. The same embargoes apply to Iran. Embargoes disrupt all international trade of these countries and these countries try every way to overcome the obstacles. I do not think that the stablecoin idea will give good results for countries, after all, they will not be able to trade with stablecoins, which they cannot do with fiat money. I don't think the West will allow trading with stablecoins. They only trade among themselves.

Iran and Russia have been getting along due to Russia's war against Ukraine. Iran is an expert of living under heavy Western sanctions, and they manage to produce weapons which Russia can use. Russia's got money to pay, so it's a partnership. Avoiding sanctions together by making a special coin to rely on, which would be backed by gold, sounds like a reasonable project to explore. It can be mutually beneficial, so maybe they'll go forward with it, as long as they can figure out how they share control over the currency (and if they can figure it out). I'm not confident that they'll come to agreement, as they wouldn't want the currency to be decentralized, but also wouldn't want just one of the parties in charge. So it's a good idea in theory but probably difficult in practice, as stablecoins normally have one particular authority in control (one company, one central bank, etc.).

How funny it is that they are trying hard to mask the very existence of crypto currencies with the digital currency backed by this and that. It’s not just Iran or Russia but many other countries are trying to form their own digital coin and inject the same into their economy. Somehow it’s becoming the race as to who will be able to make it first successful economy through their nation. Do we really think they should be entertained?

Because no nation would have thought about the digital currency if Bitcoin would not have been into existence today. The current way of working would have been only banking.

Good luck with implementing that as they will have to interface with virtually every other cryptocurrency exchange in order to get it listed, and most of them are prohibited from operating in Russia in the first place so there will be practically nobody who will be able (or willing) to list it.

I would rather have US dollars, included with the inflation, debt ceiling upcoming clusterfuck and so on, rather than trust Russia and Iran issuing IOU's over my so called gold backed stablecoin's ownership. Only someone that is deluded enough would trust these states over the US no matter how much you hate Russia. Same applies for China. I just tend to not trust countries where they make people disappear at Orwellian levels.

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.

The stablecoin that Russia wants to issue will most likely be used only for foreign trade transactions. This stablecoin is not designed for use by citizens of both Russia and other countries. This is a way to circumvent international sanctions in trade relations in general between sanctioned states.
Now Russia is buying weapons to wage war in Ukraine in Iran, Belarus, North Korea and other countries. Relations between Russia and Belarus are special due to the actual occupation of it by Russia, but this stablecoin can be used with other indicated states.

You are right with your assumptions. No doubt that this was centralized, the same with the CBDC because it was the banks and the governments are the ones that issued them. This is different to the normal cryptos that coins can be issued on different networks or blockchains like ETH, Tron and SOL. They have a blockchain of their own.

But like any other crypto, indeed that it will only be successful if it will be adopted by a lot of people or countries. I don't know if what is the status of US and Europe to Iran and Russia but if they are in a war then it will not be adopted by them. China has their own CDBC but that one is different from this, as it is said that it was backed by gold.

I dont think that's odd if the stablecoins later just used for their trades only, because they don't use USD as the payment tool currently, and beside that, each country preferred to use their own currency when doing trades. Gold is a good solution, but it's not efficient for big transaction, so instead they are creating that stablecoins.

I don't think it is impossible to replace USD considering that it has already happened for a considerable amount of trades between over a dozen different countries. But you are right, these fiat currencies are all bad not because of the shape they are in but because they suffer from the same exact flaw: "they have no cap". The reason why gold is being brought up is because it can place a cap on how much fiat they print. After all dollar was once supposed to be backed by gold and that was why it got to be international trade currency.

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.

These two countries are both under the hardest economic sanctions and there are many haters all over the world the hate these two governments because of their recent actions these two are not popular enough to reach many clients for their stablecoins even if they create something like that. However, every government and company can create their stablecoin but the most important thing is if people will accept and use these stablecoins or not. but still, there is a possibility for these two countries to create a stablecoin just for the trades they do together which can be odd.

Make that 2017
https://apnews.com/article/d0e1efce41bb42ba9cdf1f34dc3f7e5c


The same conspiracy theories that make no sense, all that gold stored at Fort Know would be around ~200 billion, just the classified U.S. Defense budget is at ~100 billion, and the US has just issued 1.5 trillion in free money, how hard would have been for them to actually print enough to buy that gold back if it had ever been spent? And why would they spend it in the first place when they can just print billions with ease?


Yeah right, cause Russia is known for its history of peace and not for land-grabbing wars nearly every decade.
I love how people on Bitcointalk throw all the shit possible at the US while ignoring that right now it's still the best place for development and the top spot in adoption, mining, batms, business accepting and people actually spending it, everything. But no, who cares about that?

The thing about Gold is this.....

Many countries have not done independent audits on their Gold reserves, so nobody actually know how much Gold they have. Let's take the Gold that are stored in Fort Knox in the USA.... The last inspection by Members of Congress was on September 23, 1974, since then... the federal authorities who control the US gold reserves at Ft. Knox ....refused a comprehensive audit to be conducted.

There might as well be Gold painted bricks in those vaults, because nobody has tested it.    

Bitcoin is very transparent.... and anyone can do an independent audit on the coins that are stored on the Blockchain. So, I will not trust anything that are hidden in a vault, with no guarantee that it exists.  

For the last 2-3 decades or so, I am hearing about this. First it was fiat currencies backed by gold and now it is stablecoin backed by gold. Russia and China have realized that it is not possible to replace the US Dollar with any of the fiat currencies. Other fiats (CNY, EUR, GBP.etc) are in a much worse state when compared to the USD. So for now, gold is the only reliable alternative. But how reliable is gold? The total amount of gold mined out till now is somewhere between 180,000 and 200,000 tons. But there is a lot more gold in the earth's crust, and the only problem is that it is contained in deposits which makes no economic sense to extract. For example, ocean water contains 20 million tonnes of gold.

What will happen in future, in case technology advances to such a level, to make extraction of gold from ocean water economically viable? Or what will happen, if humans are able to travel to other planets or asteroids and mine gold from them?

The relationship between Russia and Iran becomes stronger after The Ukraine's War, including in economic sector, where the Russian exports to Iran increased by 27%, and the imports 10% ^[1]. They are also figuring out the way to increase their economic cooperation by involving India to avoid sanctions from western countries ^[2]. Actually it's not surprising to see Russian and Iran working on some projects for their partnership, and this stablecoins is one of them. Russia have to maximize the relationship with current allies, and in the other hand, it's a good chance for Iran to get closer with a super power country. Regarding stablecoins, there are so many countries that have applied it already and are still initiating it, as you could see the list here^[3].




[1] https://financialtribune.com/articles/domestic-economy/116385/iran-russia-trade-at-4-billion
[2] https://asia.nikkei.com/Politics/International-relations/Russia-and-Iran-eye-trade-route-with-India-to-bypass-sanctions
[3] https://blog.stomarket.com/list-of-all-central-bank-digital-currency-and-stablecoin-initiatives-1bb6f6d61ea3

I believe this project China also included https://news.bitcoin.com/economists-discuss-russia-china-potentially-developing-gold-backed-currency-that-could-undermine-us-dollar/ " Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar"

but you guys must know right that back couple of a year ago that fiat is backed by gold  after recession high inflation pandemic etc maybe its time to change the fiat 

Yeah, it's definitely interesting to see countries like Iran and Russia exploring the use of stablecoins and potentially even backing them with gold. But as you mentioned, there have been many similar blockchain projects in the past and not many of them have actually been successful.

One thing to consider is that while the idea of a gold-backed stablecoin may seem appealing, it's important to remember that Bitcoin itself is often referred to as digital gold. It's decentralized, scarce, and has a finite supply, just like physical gold. So why would countries like Iran and Russia need to create a separate stablecoin when they could just use Bitcoin instead? The only reason is that they want more control over the assets and the people so instead of legalizing bitcoin, they choose to ban it and try to create their own

Another thing to keep in mind is that creating a stablecoin, especially one backed by gold, is a massive undertaking. Not only do they need to figure out the technical aspects of creating and maintaining the stablecoin, but they also need to establish trust and credibility with the public by creating a transparent connection between gold and the new coin. And let's not forget the potential regulatory hurdles and legal complications that come with creating a new digital currency.

Overall, it's definitely an intriguing development to keep an eye on, I doubt that it will be successful or be used by the people.

Some wise man once Said - tokenization is the future! This is one prime example of tokenization. You don't need to move the physical gold, but still you can transfer the value. What else do you need? US lobby needs to be broken for a peaceful world. If it can't be broken, a new lobby should come up to challenge US dominance to maintain balance.

But even if Russia and Iran join hands to create such stablecoin, I don't think that will be made available to the commoners like us. So it will remain a strictly centralized currency system.