Russian Finance Ministry eyes domestic stablecoin to bypass Western infrastructure

Russia’s Finance Ministry is evaluating the creation of domestic stablecoins pegged to foreign currencies after access to Tether’s USDT was restricted for wallets linked to the sanctioned Russian exchange Garantex, as Reuters reported.

Osman Kabaloev, deputy head of the ministry’s financial policy department, stated that Russian authorities are now “considering internal tools similar to USDT,” suggesting the creation of their stablecoin.

His comments came after digital wallets on the Russian crypto exchange Garantex were blocked, cutting off access to over 2.5 billion roubles ($30.12 million).

Russia’s access to Tether became restricted after the firm froze assets linked to the platform shortly after the EU sanctioned Garantex. Garantex disclosed the action on March 6, saying the freeze forced it to suspend operations as it could no longer facilitate user redemptions.

Stablecoins have become essential tools for crypto investors looking to bridge between digital assets and traditional currencies.

According to a recent report by Bitwise, stablecoin’s transaction volume reached nearly $14 trillion last year and surpassed Visa’s for the first time in the yearly timeframe.

Before the recent restrictions, Russian companies had widely adopted USDT for international transactions due to increasing barriers to accessing the global financial system.

Regulatory shift toward domestic alternatives

Russian regulators have maintained a strict stance on using crypto within the domestic economy, particularly for retail payments.

However, a limited regulatory framework has permitted firms to experiment with crypto-based settlement systems for international trade to mitigate the effects of Western sanctions. The Finance Ministry’s current consideration of stablecoins marks a continued exploration of such alternatives.

Kabaloev’s remarks point to a shift in strategy toward developing sovereign or semi-sovereign tools for cross-border value transfer. While the Finance Ministry did not disclose a specific design or implementation timeline, the report claimed it appears open to stablecoins pegged to the US dollar and other foreign currencies.

Meanwhile, Bank of Russia Governor Elvira Nabiullina reiterated the central bank’s resistance to domestic crypto circulation but acknowledged that Russian firms are actively testing international crypto payment solutions as part of the regulatory sandbox.

The new stance comes amid broader efforts to increase Russia’s financial autonomy and minimize reliance on Western financial infrastructure. In this context, creating a ruble-independent stablecoin tied to alternative foreign currencies could offer Russian firms a controlled and internally governed method for accessing global liquidity.

While the Russian Finance Ministry has not committed to formal stablecoin issuance, the proposal reflects growing attention among Russian institutions to the operational risks of foreign-controlled crypto instruments in an increasingly fragmented global payments environment.