- Mendeleev suggested a Russian stablecoin should follow DAI’s overcollateralization model while remaining compliant with Russian regulations.
- Despite technical feasibility, Mendeleev expressed skepticism about near-term implementation due to Russia‘s regulatory direction toward centralization rather than liberalization.
At the recent Blockchain Forum in Moscow, executives discussed potential requirements for a Russian ruble-backed stablecoin. Sergey Mendeleev, founder of digital settlement exchange Exved and former founder of the sanctioned Garantex exchange, presented seven essential criteria for creating a “replica of Tether” during his keynote speech on April 23.
Among the key features Mendeleev proposed were the ability to conduct untraceable transactions and transfers without Know Your Customer (KYC) verification, while simultaneously complying with Russian regulations. However, he noted that these competing requirements make near-term development unlikely given the current regulatory landscape.
DAI Stablecoin Model Recommended
Mendeleev advocated for an overcollateralization approach similar to the Dai (DAI) stablecoin model, which maintains its dollar peg using smart contracts. “Any person who buys it will understand that the contract is based on the assets that super-securitize it, not somewhere on some unknown accounts, but free to be checked by simple crypto methods,” he explained.
Other necessary features identified included abundant liquidity across both centralized and decentralized exchanges, non-KYC transactions, interest-earning capabilities, and untraceable yet affordable transactions. Mendeleev emphasized that users should be able to exchange the stablecoin whenever needed without revealing personal data.
Regulatory Challenges Ahead
Despite the technical feasibility of creating a Russian version of USDT, Mendeleev expressed concern about Russia’s regulatory direction. “Unfortunately, from the point of view of regulation, we are currently going in the absolutely opposite direction… We are going in the direction of absolute centralization, not in the direction of liberalization of laws, but consolidation of prohibitions,” he stated at the conference.
In conversations with Cointelegraph, Mendeleev noted that while most technical aspects could be implemented by combining features from existing projects like the ruble-pegged A7A5 stablecoin and unblockable contracts at DAI, regulatory compliance and user trust remain significant hurdles.
Meanwhile, Russia continues to develop its central bank digital currency, with Finance Minister Anton Siluanov announcing that the digital ruble is scheduled for rollout to commercial banks in the second half of 2025.
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