Russia is considering creating its own stablecoins after Tether, the company behind USDT, blocked Russian digital wallets in March 2025. A stablecoin is a cryptocurrency that maintains a stable value by being tied to another currency, usually the US dollar. These digital currencies help move money quickly between other cryptocurrencies or into traditional cash. After Tether froze Russian-held digital wallets, officials began thinking about developing similar stablecoins, but pegged to currencies other than the US dollar.
In early March, Garantex, a popular crypto exchange in Russia, announced Tether had blocked wallets on its platform. These wallets held around 2.5 billion rubles, or about $30 million. This action followed sanctions by the European Union against Garantex. The exchange had to stop its operations temporarily. On Telegram, Garantex accused Tether of attacking the Russian crypto market. The message warned users that any USDT held in Russian wallets might also face restrictions. They suggested that Garantex was only the first exchange affected and others would soon follow.
Osman Kabaloev, a senior official at the Russian Ministry of Finance, responded to the incident. He explained that Russia needs internal tools similar to USDT. Kabaloev suggested these new stablecoins could be pegged to different foreign currencies. He believes this step will protect Russian crypto users from future financial disruptions caused by external sanctions.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently sanctioned Garantex for supporting financial activities linked to Houthi, a terrorist group. OFAC blacklisted eight wallet addresses used by the exchange. This made it illegal for US-based companies or individuals to deal with those addresses. The sanctions led to Tether’s quick response to freeze related wallets. Tether often blocks wallets to comply with international laws or US sanctions.
Russia faces growing international sanctions. To manage these restrictions, Russian businesses are testing cryptocurrency payments for international transactions. Crypto payments allow money transfers without relying on traditional banking systems. Western sanctions have blocked or limited Russian companies’ access to traditional financial systems. Because of this, Russia is becoming more open to crypto-friendly policies, especially for international trade.
Elvira Nabiullina, the governor of Russia’s central bank, the Bank of Russia, has been cautious about using cryptocurrencies for domestic payments. However, she confirmed that Russian firms are actively testing crypto payments for international trade. Nabiullina says cryptocurrencies might help Russian companies avoid disruptions from financial sanctions. But she emphasizes that cryptocurrencies are not suitable for domestic payments because of their instability and risks.
At the same time, the Bank of Russia is preparing to introduce its own central bank digital currency (CBDC), called the digital ruble. A CBDC is different from a stablecoin. While stablecoins are typically run by private companies like Tether, a CBDC is issued and controlled directly by a nation’s central bank. It is essentially digital money backed by the government, equal in value to traditional cash.
The Bank of Russia has been working on the digital ruble for about two-and-a-half years. Recently, Nabiullina announced plans for a large-scale rollout of the digital ruble starting in July 2025. The central bank completed initial testing involving 12 Russian banks in 2021. Two banks successfully completed digital ruble transfers between customers early in 2022. Now, another 20 banks are ready to join this pilot phase. Additionally, 9,000 people and 1,200 Russian businesses will participate in these tests.
Nabiullina described how the introduction of the digital ruble would happen gradually. First, the central bank will require large, important banks to adopt digital ruble transactions. Next, other banks with broader licenses will follow. Finally, smaller banks will adopt the system. Merchants and service providers will start accepting digital ruble payments in similar stages. This careful approach mirrors the way non-cash payments like debit cards and online banking were introduced in Russia.
The move toward digital currencies, both stablecoins and CBDCs, is a global trend. Many countries and regions, including the European Union and the United States, are closely regulating stablecoins. For example, the EU recently introduced rules called Markets in Crypto Assets (MiCA). These rules set clear standards for stablecoins and crypto exchanges in the EU. Meanwhile, US lawmakers are considering several stablecoin regulations.
The Russian government believes stablecoins pegged to currencies other than the US dollar will protect its financial stability and international trade. With USDT blocked from some Russian wallets, there is growing concern that Russian crypto markets remain vulnerable to outside pressures. Developing an internal stablecoin offers a potential solution to this issue. This move aligns with Russia’s recent efforts to support crypto adoption for international transactions.
Russian businesses are increasingly viewing cryptocurrency payments as a necessary alternative. They need reliable ways to transfer money across borders without interference from international sanctions. Stablecoins provide one method to do this quickly and securely. A new stablecoin, controlled within Russia, could become a key part of Russia’s international financial strategy.
The Bank of Russia’s decision to launch the digital ruble in 2025 complements the push for stablecoins. The digital ruble could make domestic transactions simpler and cheaper, especially as cash use continues to decrease. However, unlike stablecoins, the digital ruble won’t face external restrictions, because it’s fully managed by Russia’s own central bank.
Overall, Russia’s interest in stablecoins and a central bank digital currency shows the country’s aim to adapt financially to global sanctions. Russia wants to reduce its dependence on foreign financial services and strengthen its own digital payment systems. Both stablecoins and the digital ruble could be critical parts of Russia’s financial future.
