Contemplates launch of locally-minted digital currency to evade financial restrictions in Russia
In the ever-evolving world of digital currencies, Russia is making strides in exploring stablecoin options for international trade. This move comes amid ongoing sanctions, as the country seeks to bypass financial restrictions and facilitate cross-border payments.
The AE Coin, a dirham stablecoin authorized by the Central Bank of the UAE, serves as a model for Russia's ambitions. The dirham is pegged to the dollar, offering a stable value. However, Russia's focus appears to be on stablecoins tied to other currencies, such as Tether, the AE Coin, and potential plans for a stablecoin in the Chinese yuan or BRICS basket.
One such example is the A7A5 stablecoin, a ruble-pegged digital currency launched in early 2025. Despite being used domestically and traded through a Kyrgyzstan-based exchange, the A7A5 has faced significant challenges due to sanctions targeting its Russian-linked entities. As a result, it lost its ruble peg in August 2025 and experienced a sharp drop in value.
Russia is not resting on its laurels, though. The country is actively working on a digital ruble central bank digital currency (CBDC) and has initiated a pilot digital ruble program late last year. While these developments are significant, they are distinct from issuing a publicly state-backed stablecoin targeting import/export payments like Tether or AE Coin.
Osman Kabaloev, a Deputy Director at the Russian Finance Ministry, has proposed the idea of Russia launching a stablecoin for import and export payments. Last August, there were reports of plans to issue a stablecoin in the Chinese yuan as well as a BRICS basket. However, it remains unclear whether China's government would support a yuan stablecoin or would prefer the use of its CBDC.
Russia has also made strides in its regulatory framework for digital financial assets (DFAs), allowing them to be used for cross-border payments a year ago. Despite initial resistance, a new experimental program was launched late last year to support the use of DFAs for imports and exports. This shift has seen a significant proportion of Russia's cross-border payments move to the Chinese currency.
Another initiative worth mentioning is the BRICS Bridge, a planned cross-border CBDC payment system for local currency payments amongst the ten BRICS member states. Pilot transactions for the use of cryptocurrencies for imports and exports were conducted at the end of December.
In summary, while Russia is involved in crypto innovation and stablecoin deployment linked to ruble transactions, the stablecoin landscape is primarily driven by private projects under sanction risk, not yet a formal state-endorsed stablecoin strategically targeting import/export payment circumvention. The future of Russia's stablecoin landscape remains uncertain, but one thing is clear: the country is actively exploring digital currency options to navigate ongoing sanctions and facilitate cross-border trade.
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