Russian President Proposes a Global Payments System Based on Blockchain

Vladimir Putin, the President of Russia, has called into question the monopoly that exists in the international financial payment systems and has suggested a worldwide payment system that is based on the technology of blockchains.

Putin made these remarks during the International AI Journey Conference, which was held in Moscow and was organized by Sberbank, the biggest bank in Russia.

The Russian President has stated that he is “confident” that something similar will definitely be created and will develop because “nobody likes the dictate of monopolists,” which is harmful to all parties, including the monopolists themselves. “I am confident that something like this will certainly be created and will develop.”

Putin also indicated that tensions between Russia and the West over the invasion of Ukraine are putting international payments at risk, and he referred to sanctions that were imposed by other countries as “illegitimate limitations.”

The existing system of international payments is said to be costly by the President of Russia, who also noted that a limited number of nations and financial institutions control the regulation of this system as well as the correspondent account system.

Putin said that the technology of digital currencies and blockchains may be used to establish a new system of international settlements that is significantly more practical, entirely secure for its users, and, most importantly, independent from banks and other outside influences.

In July, Russia’s pro-blockchain President issued a decree that prohibited the use of cryptocurrencies and non-fiat currencies (NFTs) as methods of payment. This just lends credence to the notion that Vladimir Putin is not really interested in the cryptocurrency industry, but rather in the technology upon which it is founded.

A few of days ago, Russian MPs disclosed that they are working on a proposed amendment to create a national cryptocurrency exchange in the country of Russia. Participants in the market have been consulted by members of the State Duma over the required amendments to the statute titled “On Digital Financial Assets.”