Iran and Russia are reportedly planning to jointly issue a new stablecoin, a type of cryptocurrency that is backed by gold, that would serve as a payment method for foreign trade.

The stablecoin would enable cross-border transactions instead of using fiat currencies like the US dollar, Russian ruble or the Iranian rial.

The stablecoin would operate in a special economic zone in Astrakhan, where Russia has been accepting Iranian cargo shipments.

However, the project would only be possible once the digital asset market is fully regulated in Russia, which is expected to happen in 2023.

Both countries have banned the use of cryptocurrencies like Bitcoin and stablecoins like Tether for payments, but have been actively working to adopt crypto as a tool for foreign trade.