Russia Eyes Own Stablecoins After USDT Blockage

A senior official from Russia’s Finance Ministry has suggested that the country should develop its own stablecoins pegged to various currencies following the recent blocking of USDT stablecoin wallets linked to Russia. Dollar-pegged stablecoins have gained popularity for facilitating fund transfers between cryptocurrencies and cash, especially as Western sanctions have complicated international payments for Russian firms. Osman Kabaloev, the deputy head of the ministry’s financial policy department, emphasized the need for internal tools similar to USDT. The Russian crypto exchange Garantex reported that Tether had blocked wallets on its platform containing over $30.12 million, leading to a suspension of operations after EU sanctions were imposed. Despite opposition from the central bank’s head, Elvira Nabiullina, to the use of cryptocurrencies for domestic payments, she noted that Russian firms are actively experimenting with international cryptocurrency transactions.