Russian official calls for domestic stablecoin alternatives to USDT
Following the freeze of USDT wallets, Russia is exploring the development of domestic stablecoins to reduce reliance on foreign-issued tokens.
A senior Russian finance official has called for domestic stablecoins after EU sanctions led to the freeze of over 2.5 billion roubles held by Garantex. It raised concerns about reliance on foreign-issued assets.
Osman Kabaloev suggested Russia explore creating its stablecoins, possibly pegged to local currencies, as an alternative to USDT. Stablecoins are widely used in the cryptocurrency space for their stability, particularly in regions facing financial sanctions or restrictions.
In Russia, USDT has been used by businesses for international transactions. The trend has grown as access to global payment systems has become more restricted due to Western sanctions.
While Russia has allowed limited experimental use of cryptocurrency for cross-border payments, domestic use of crypto remains restricted. The call for a homegrown stablecoin reflects Russia’s growing concerns over digital asset security and sovereignty.
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