Russia is contemplating the launch of its own stablecoin, as indicated by Osman Kabaloev, the Deputy Head of the Finance Ministry. Following the recent actions by U.S. authorities to freeze cryptocurrencies connected to the sanctioned exchange Garantex, the Kremlin sees an urgent need to create its own digital currency, seemingly similar to Tether’s USDT.

💥BREAKING: RUSSIAN FINANCE MINISTRY CALLS FOR CREATION OF NATIONAL CRYPTO STABLECOIN — Crypto Rover (@rovercrc) April 16, 2025

Kabaloev articulated that exploring a stablecoin could empower Russia to navigate financial pressures and sanctions from abroad better. He emphasized, “We do not impose restrictions on the use of stablecoins… We must explore alternatives akin to USDT.” Furthermore, his remarks composed a larger context as Garantex, which was previously sanctioned, attempts to re-enter the market under a new identity after alleged large-scale money laundering.

In other notable developments, the stablecoin ecosystem is flourishing, with a remarkable growth trajectory expected to reach $2 trillion in valuation by 2028. A recent report indicates that stablecoin transactions soared past Visa payments in 2024, marking a significant milestone for the financial sector.

In the wake of these transformations, Evgeny Masharov proposed establishing a government crypto fund supported by assets from criminal proceedings to bolster the new digital economy that Russia aims to foster.

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With regulations in development, including the U.S. GENIUS Act which seeks to clarify the stablecoin market, major financial institutions are forecasting a drastic rise in the stability and growth potential of digital currencies in the coming years.