Russia contemplates local digital currency release to bypass worldwide sanctions
Russia is set to expand its use of digital assets for cross-border payments, with plans to create stablecoins linked to foreign currencies such as the Chinese yuan and the BRICS currency basket.
This move aligns with official moves in 2024 and 2025 to legalize and regulate cryptocurrencies, including stablecoins, for import and export payments. Deputy Director-level officials and legislative developments in Russia have indicated this shift.
In July 2024, Russia considered legislation to allow official use of stablecoins for cross-border payments, with proposals submitted by Deputy Governor Alexey Guznov of the Bank of Russia. The State Duma passed laws legalizing certain cryptocurrencies and stablecoins for foreign trade and exchange operations starting September 2024.
Osman Kabaloev, the Deputy Director at the Russian Finance Ministry, has proposed the idea of Russia launching a stablecoin for import and export payments. Although specific references to Kabaloev regarding the stablecoin plan are not found in the available data, his proposal is not the first report about Russian stablecoins. Last August, there were reports of plans to issue a stablecoin in the Chinese yuan as well as a BRICS basket.
Russia is also preparing to launch a digital ruble central bank digital currency (CBDC). Beyond legislative frameworks, a ruble-pegged stablecoin called A7A5, backed by the state-linked Promsvyazbank and issued through a Central Asian jurisdiction, has been launched in 2025. This indicates practical steps toward stablecoin use within Russia’s financial ecosystem.
Moreover, Russia has two experimental programs for cross-border payments: digital financial asset (DFA) issuance and a regulated tokenization regime. Tether, a stablecoin pegged to the dollar, has been mentioned in this context. Notably, Tether froze $28.5 million in funds belonging to sanctioned Russian crypto exchange Garantex, causing it to suspend services.
The AE Coin, a dirham stablecoin authorized by the Central Bank of the UAE, was also mentioned at a conference of the Association of Russian Banks by Osman Kabaloev. The AE Coin is pegged to the dollar.
Russia's shift towards stablecoins for cross-border payments is part of a broader push for financial sovereignty and digital currency adoption. The country has been making significant strides in this area, with a digital ruble pilot scheduled for broader domestic use in October 2025. Plans also include phasing out foreign payment systems like Mastercard and Visa in favor of domestic solutions.
There's been much talk of a BRICS Bridge, a planned cross-border CBDC payment system for local currency payments amongst the ten BRICS member states. A significant proportion of Russia's cross-border payments have now shifted to the Chinese currency. Local ratings agency ACRA has highlighted frictions for foreign DFA holders due to the need to onboard with Russian banks.
In summary, Russia’s approach entails establishing legally recognized stablecoins linked to major currencies for cross-border transactions, backed by regulatory and institutional support, which aligns with the broader geopolitical and economic goals referenced by Russian officials.
- Russia's move to legalize and regulate cryptocurrencies, including stablecoins, for import and export payments in 2024 was initiated by Deputy Governor Alexey Guznov of the Bank of Russia.
- Beyond legislative frameworks, Russia has launched a ruble-pegged stablecoin named A7A5 in 2025, which indicates practical steps towards stablecoin use within Russia’s financial ecosystem.
- The AE Coin, a dirham stablecoin authorized by the Central Bank of the UAE, was discussed by Osman Kabaloev at a conference of the Association of Russian Banks, highlighting Russia's interest in exploring stablecoin solutions.
- Russia's shift towards stablecoins for cross-border payments is part of a broader push for financial sovereignty and digital currency adoption, which includes plans to phase out foreign payment systems like Mastercard and Visa in favor of domestic solutions.
