A senior Russian Finance Ministry official said Wednesday that Russia should consider developing its stablecoins pegged to foreign currencies following the recent freezing of digital wallets linked to the USDT stablecoin by its issuer, Tether.
The move comes after wallets associated with Russian users were blocked last month, disrupting payment activities on the Garantex crypto exchange. The incident has prompted calls within the Russian government for greater financial autonomy in the digital asset space, particularly amid continuing Western sanctions.
Tether’s Actions Prompt Government Response
On March 6, crypto exchange Garantex reported that Tether had restricted access to wallets holding over 2.5 billion roubles (approximately $30 million). The blockage led Garantex to suspend operations shortly after being added to the European Union’s sanctions list.
Osman Kabaloev, deputy head of the Finance Ministry’s financial policy department, said the incident had underscored the risks of reliance on foreign-controlled digital assets. “The recent blockage makes us think that we need to consider creating internal tools similar to USDT, possibly pegged to other currencies,” Kabaloev stated.
Stablecoins such as USDT are widely used in the crypto industry to facilitate transactions between digital and fiat currencies due to their consistent value, often pegged to the U.S. dollar. Before the restriction, USDT was reportedly a popular means of international payment for Russian businesses.
Crypto Use Expands in Sanctions Environment
Russia has been exploring the limited use of cryptocurrencies for cross-border payments, especially since traditional financial channels have been constrained by international sanctions. In 2022, Russian regulators began allowing experimental use of digital currencies for international trade.
Despite the Finance Ministry’s interest in alternative stablecoin development, the country’s central bank remains cautious. Central Bank Governor Elvira Nabiullina reiterated the institution’s opposition to using cryptocurrencies for domestic payments. She acknowledged that firms are testing crypto in cross-border transactions under government supervision.
The blocking of USDT wallets has reignited discussions over Russia’s digital asset strategy. While the idea of a state-linked stablecoin has been floated previously, the latest disruption has brought new urgency to the debate. No official plans or timelines for the creation of Russia-specific stablecoins have been announced.
