Rostec Launches RUBx Stablecoin to Evade Sanctions

Russian state-owned weapons manufacturer Rostec has announced plans to launch its own stablecoin, named RUBx. The digital token will be backed by rubles and will operate on the Tron network. This move comes as Russia continues to explore the use of cryptocurrencies to circumvent international sanctions imposed following its invasion of Ukraine.

According to reports, the RUBx token will be backed one-to-one by rubles, with each token representing a real obligation in the national currency. This backing is legally fixed, ensuring the stability of the token. The project has received approval from Russia's central bank, allowing companies and individuals to transfer funds using the stablecoin.

Rostec, known primarily for its production of aircraft and defense systems, also manufactures medical tools and car engines. In addition to the RUBx stablecoin, the company plans to launch a payments platform called RT-Pay, which will utilize Russia's banking infrastructure.

The Tron network, which supports the TRX digital coin, is a popular choice for stablecoins due to its ability to facilitate cheap and quick transactions. Major stablecoins such as USD Coin and USDT are already available on the Tron network, as well as other blockchains like Ethereum and Solana.

Stablecoins are digital tokens backed by non-volatile fiat currencies, making them popular for quick transactions, payments, and sending remittances overseas. They offer a faster and cheaper alternative to traditional banking methods. The use of stablecoins has gained traction among major companies and banks, with entities like Meta, Amazon, and Bank of America expressing interest in issuing their own tokens.

Russia's entry into the stablecoin market is not its first foray into cryptocurrencies. The country has previously used crypto to evade sanctions and legalized crypto mining last year. President Vladimir Putin has also publicly discussed the potential of Bitcoin and other electronic payment systems, stating that nobody can stop their use.