Russia Set To Ditch USDT for Its Own Stablecoin

The Russian Ministry of Finance is exploring the possibility of developing its own stablecoin. This follows recent U.S. sanctions and actions by Tether, which blocked wallets linked to the Garantex exchange. This initiative aims primarily to avoid dependency risks associated with foreign stablecoins, such as USDT.

Russia explores the development of a national stablecoin

On March 6, the U.S. Department of Justice, in collaboration with German and Finnish authorities, had frozen domains associated with Garantex, accused of processing over 96 billion dollars in criminal funds since 2019. Tether also froze 27 million dollars of its stablecoin, forcing Garantex to suspend all its operations, including withdrawals.

In this regard, Russian Finance Minister Osman Kabaloev revealed that he was considering creating a national stablecoin backed by other currencies to break dependence on foreign stablecoins, particularly Tether (USDT). The need to develop internal financial instruments has thus become a priority.

Furthermore, he emphasized that no restrictions were imposed on the use of stablecoins within the framework of an experimental legal regime. These recent events have highlighted potential risks for Russia, particularly regarding sanctions and external control.

Between opportunities and threats

Alongside Russia, Italian Economy Minister Giancarlo Giorgetti warned that stablecoins, especially those backed by the dollar, represented a much greater threat to Europe than Donald Trump’s trade policies. According to him, the rise of stablecoins could disrupt European financial stability by weakening the euro’s position in cross-border transactions. Hence the need to strengthen the digital Euro project to counter this dynamic.

Stablecoins offer obvious advantages, including fast and cheaper transactions, but their adoption raises questions. While some investors and platforms use them to facilitate payments, governments and regulators are becoming increasingly vigilant, concerned about their potential for financial destabilization.

Russia is therefore seeking to protect itself from international sanctions by developing its own stablecoin. Meanwhile, Europe is redoubling efforts to counter the growing influence of American stablecoins, which could reach 2000 billion dollars by 2028. In this context, the future of these cryptos seems uncertain, caught between economic opportunities and geopolitical concerns.