Russian Stablecoins: What Could Go Right?

Russia is advancing its crypto strategy to circumvent Western sanctions. Unable to access dollars or euros, the country may turn to stablecoins to make payments with “friendly countries,” according to Russian state news agency Tass.

“We are currently working with a number of countries to create bilateral platforms in order not to use dollars and euros,” Russian Deputy Finance Minister Alexey Moiseyev said. “Stablecoins can be pegged to some generally recognized instrument, for example, gold, the value of which is clear and observable for all participants.”

To his point, stablecoins are a type of cryptocurrency pegged to another asset, like dollars or gold. They are designed to be stable, unlike bitcoin (BTC), ether (ETH), or other digital assets that are notoriously volatile. The crypto market’s top stablecoins are issued by centralized companies, such Tether’s USDT and Circle’s USDC.

As use cases go, Russia has a “real” real world need. They can’t pay for their imports in dollars or euros. Rubles still work, but low liquidity, exchange rate risks, and general macroeconomic conditions are putting an enormous amount of pressure on Russian exporters. With the big reserve currencies off-limits, there is a need for an alternative. Stablecoins fill the bill nicely. (No pun intended.)

Russia has been talking about this for years, but now there seems to be more urgency and a greater political will. We may see something this fall.

The U.S. Treasury has already warned crypto trading exchanges that there will be consequences for helping Russian companies to circumvent sanctions. The largest platforms, such as Binance and Coinbase, have introduced restrictions for Russian traders.

Is crypto a good work-around for Russia? Will we see weaponized crypto or a global “centralization” of decentralized finance?

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit



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