South Korea and Russia conduct the world’s first international legal transaction with XDR stablecoin
South Korea and Russia performed the world’s first ever legal transaction using the stable cryptocurrency known as XDR. KARMA.RUS, a Russian company, made the payment to the South Korea-based Mile Unity Korea in exchange for promotional and translation services. XDR is a stablecoin tied to the International Monetary Fund’s highly stable reserve currency Special Drawing Rights (SDR).
The transaction amount was 400 XDR, which is tied to the value of SDR at a ratio of 1-to-1. The transaction was carried out on November 15 at the rate of the Bank of Russia, which was 91.79 Rubles per XDR, resulting in a contract amount of about 37,000 Rubles (540 USD).
In exchange for the 400 XDR, Mile Unity Korea agreed to conduct promotional and informational events and content translation services. The bilateral transaction was concluded and conducted according to the accounting standards of each company and in accordance with local legislation. The contract amount includes 10% in the form of VAT in Korea.
The deal became the first legal payment agreement in the world using the XDR stablecoin. The convenience of XDR lies in the fact that its price is pegged to the reserve currency of the IMF, an extremely stable currency that has only changed in value by 11% since 1981.
The daily turnover of XDR already exceeds 30 million XDR (more than 41 million USD). Transfers and transactions in XDR are effective ways to solve the global problem of high commissions in cross-border remittances. According to the latest World Bank data, the commission for sending money from one country to another is almost 7% worldwide, and exceeds 20% in some African countries. XDR could level the playing field and open up global commerce to many economies currently marginalized under the existing system.
You can view the transaction documentation at the Mile Unity Foundation website.