The new ruble-backed stablecoin A7A5 is now available for Russian citizens, raising attention on its potential use in circumventing international sanctions.
Availability of A7A5 Stablecoin
The A7A5 stablecoin can now be purchased using payment cards issued by PSB Bank. Currently, this option is only available to cardholders of this bank. The project plans to extend support to other cards in the future. To make a purchase, users need to register on the website and provide their phone numbers, along with identity verification.
Nature and Origin of A7A5 Stablecoin
Launched in February this year, A7A5 is a cryptocurrency backed by deposits in PSB, which is a state-owned institution. The stablecoin is issued by a company called Old Vector, registered in Central Asia, allowing legal operations with both the ruble and digital assets.
Concerns and Issues Regarding A7A5
Connections of A7A5 to Moldovan oligarch Ilan Shor and the Kyrgyzstan-registered exchange Grinex raise concerns. Allegations of evading financial sanctions and money laundering are gaining close scrutiny. A7A5 also features income earning functionality, making it more attractive for users.
The A7A5 stablecoin provides Russian citizens with the means to circumvent international financial restrictions, raising important questions about its use and potential risks.
