Russia's Defense Giant Launches New Cryptocurrency Amid EU Sanctions
Russia's defense giant Rostec has quietly launched its new cryptocurrency RubX despite EU sanctions. According to blockchain data, RubX soft-launched on July 17 and started offering swaps to Tether (USDT) via Telegram on July 24.
Cryptocurrencies have become a key conduit for Russian importers to make payments abroad due to Western sanctions, which have imperiled Russian access to the global banking system. Cut off from SWIFT and correspondent banking, some Russian companies have shifted to dollar-based crypto tokens to make payments for international trade contracts, including those with China.
RubX joins A7A5, operated by Russia's Promsvyazbank (PSB), as Russia's second ruble stablecoin. The stablecoin tokens are pegged 1:1 to ruble reserves. Dmitry Shumaev, a RubX shareholder, stated that it was no surprise the token had been sanctioned, saying 'the sanctions listing of RubX serves as a testament to its technological potential and strategic innovation.'
Russian legislation does not allow purchases to be made with cryptocurrencies inside the country, but RubX has found ways to operate despite this. Blockchain expert Richard Sanders noted that ruble tokens primarily serve as a payment channel to USDT.