Russia's Ambitious Crypto Plans

Russia plans to launch two crypto exchanges, one in Moscow and the other in St. Petersburg. This move underscores the need to boost foreign economic activity (FEA). Moreover, it aims to build an RMB-linked BRICS stablecoin.

The crypto exchange initiative is designed to provide a new platform for digital transactions. However, experts have expressed concerns over the potential limitations and risks associated with the project, particularly in light of international sanctions.

Russia's Plans On Developing Crypto Exchanges & Stablecoin

According to a report by Kommersant, one of the crypto exchanges will likely leverage the infrastructure of the St. Petersburg Currency Exchange (SPCE) to facilitate foreign economic activity. The other platform is expected to be based in Moscow.

However, it remains to be seen whether it will be developed on the foundation of the existing Moscow Exchange or as a separate entity within an experimental legal framework.

The primary focus of these crypto exchanges will be the creation and use of stablecoins. For context, stablecoins are a type of crypto typically pegged to a reserve of assets, such as a national currency or a basket of currencies.

In this case, the Russian government is reportedly considering the development of stablecoins linked to the Chinese Renminbi (RMB) Yuan and the BRICS currency basket.

Hence, this move aims to boost economic cooperation among the BRICS nations (Brazil, Russia, India, China, and South Africa). However, the development and deployment of these stablecoins present several challenges.

Oleg Ogienko, CEO of BitRiver, pointed out the technological difficulties in integrating stablecoins into Russia's blockchain infrastructure. He noted that "stablecoins are more like cryptocurrency due to their legal nature." This could complicate their convertibility, liquidity, and security.

Moreover, the complexity of these issues could hinder the seamless adoption of stablecoins in Russia.