Russia Considers Issuing Its Own Stablecoin Amid Sanction Pressures
A top Russian finance official has suggested launching a national stablecoin to shield the country from future sanctions and financial bans. The appeal comes after U.S. officials froze wallets belonging to Russian crypto exchange Garantex, fueling concerns over foreign domination of the digital asset sector.b
Official Calls for Local Alternative
Russia’s Finance Ministry’s financial policy department Deputy Director, Osman Kabaloev, during an interview with TASS on April 16, said that Russia must think about launching its own stablecoin such as Tether’s USDT.
“We don’t limit the use of stablecoins within the experimental legal regime,” Kabaloev stated. “But the recent events showed that this instrument can be risky for us.” Possibly, he continued, Russia will require an internally controlled asset that might be fixed to foreign currencies.
Garantex Wallets Frozen
Kabaloev’s remarks follow the freezing of Garantex-related domains by U.S., German, and Finnish authorities on March 6. They allege that the exchange processed more than $96 billion in illicit funds. Stablecoin issuer Tether froze $27 million in USDT linked to Garantex on the same day, effectively disabling the exchange’s operations.
While Garantex was sanctioned from April 2022, it remained active allegedly and has recently restarted operations under a different name, Swiss blockchain experts state.
Growing Government Participation in Crypto
The Russian state is also getting deeper into crypto policy. On March 20, Evgeny Masharov, a Civic Chamber member, proposed a state-run crypto fund built from assets seized in criminal investigations. Legislators, meanwhile, are working on a bill that would recognize digital assets as property in criminal cases.
Stablecoins on the Rise
The ruling comes after massive growth in the global stablecoin market. The overall market capitalization has surpassed $200 billion since mid-2023. In 2024 alone, stablecoin transaction volumes reached $27.6 trillion, beating Visa and Mastercard combined. Wallet activity also increased by over 50%, according to Artemis and Dune.
As geopolitical tensions rise, Russia’s pivot towards a national stablecoin can be an indicator of a shift in its digital finance policy and a bid to secure sovereignty in the era of blockchain.
