With their recently announced stablecoin attempt doomed to failure, Russia and Iran will soon learn that bitcoin is the solution they need. Because there is no real trust between the two countries, never was and never will be. Even if they can solve the creation of a common crypto-coin, the question still remains: why, if there is already an unmanipulated, uninflatable, reliable money in the world?
After the failure of their stablecoin attempt, Iran and Russia will inevitably take over bitcoin, reports a Bitcoin Magazine opinion piece. Recently, news emerged that the Iranian central bank is working on the creation of a stablecoin in cooperation with the Russian Association Of The Crypto Industry And Blockchain. It will be backed by gold and used to settle trade.
This is not the first time for any countryShe entry into the crypto universe, and it won’t be the last either. But thisShenothing will come of the venture, and in the end both countries will be one step closer to bto introduce itcoin – writes the magazine.
Iran and Russia need cryptocurrency
As recently as August 2022, Iran approved the use of cryptocurrencies to purchase imports to circumvent sanctions. Also in August, he successfully completed a trade deal valued at tens of millions of dollars, which is believed to have been paid in bitcoin.
Russia has also begun to move into the broader cryptocurrency space following being forced to look for alternatives to conduct international trade due to US sanctions. Therefore, he slowly began to change his stance on cryptocurrencies in 2020. Last year, Russia announced that it would allow international settlement in cryptocurrencies without restrictions, which was a huge turnaround compared to the past. Russia also sees the potential of cryptocurrencies as a means of exchange.
Sanctions strengthen the bond
Both countries have been hit by Western sanctions, but have found ways to circumvent them.
The lesson both countries have learned is that no one should be trusted, especially in the world of finance.
The West has frozen Russia’s dollar reserves. And Iran agreed to a nuclear deal in 2015, which was then scrapped by President Donald Trump. According to the author, this is considered an insult in Persian culture. The Iranian government also has very little trust in foreign governments.
There is also a lack of trust between Russia and Iran
The author provides a historical overview of the relationship between Iran and Russia, which has not always been clouded, to say the least, despite the fact that they seem to have found common ground: the role of the enemy of the West. He then goes on to explain why the new stablecoin will fail. Because between the two countries
nincs trust, never was and never will be.
While many Russian and Iranian leaders may believe that their countries’ best engineers can create a suitable product that will avoid a counterattack, what is to stop the other country from giving itself backdoor access? What’s to stop someone from creating a way to double spend tokens?
The issue of gold reserves
However, the biggest question arises regarding the gold reserve behind the stablecoin. Where will the gold be stored and who will check that the stated amount of gold is still there? Due to the lack of trust, none of the countries can be expected to accept blindly, the other point is to keep the quantity that they give. And sanctions prevent a reliable third party from getting involved (although China would somehow “fit into the puzzle”).
But once this big and important hurdle is overcome, another question remains: for what? Why is there a need for all this when there is a cryptocurrency that has enough liquidity to meet their needs and does not require trust in any party?
We need money that cannot be manipulated and cannot be inflated
Both Iran and Russia have banned their residents from using Bitcoin, but over time some elements of their position have already been changed.
It’s safe to say that both governments are still trying to understand cryptocurrencies abilities. THEfrom information scienceughis in the development stageson
History has proven that those leaders who have the ability to control money have manipulated that money for their own benefit.
It’s not by chance that the Roman Empire fell, and it’s not by chance that we don’t use guilders or pounds as global currencies.
The only solution is the introduction of a non-manipulable, non-inflatable, reliable form of money. Bitcoin is the inevitable money they are looking for, they write.
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Cover image: Will bitcoin be the miracle lamp? (Pixabay.com)
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