Vladimir Putin sees blockchain and cryptocurrencies as the ultimate way to circumvent financial sanctions against Russia. To push the idea even further, the current Russian president is proposing to create a universal payment system based on the blockchain.
A system that is completely independent from banks and third party interference
Since the start of the war in Ukraine, there have been numerous reports that Russia was considering cryptocurrency for cross-border payments. In response, the EU extended crypto sanctions.
Vladimir Putin addressed the issue again at the international AI Journey conference in Moscow on November 24. This is an annual conference organized by Sberbank, Russia’s largest bank.
In his speech, Russian President Vladimir Putin suggested the creation of a global payment system based on blockchain technology. This new international payment system must be completely independent from banks and third party interference.
“Digital currencies and blockchain technology can be used to create a new system of international settlements that will be much more convenient and definitely more secure for the users and, most importantly, will not rely on banks or interference from third countries,” he explains. .
Putin to lower the costs of international transactions thanks to the blockchain
The traditional payment system encourages outside interference. This way of working also gives them the financial monopoly, but not only. With TradFi (traditional finance), the transaction costs are particularly high.
According to the President of Russia, current international payment methods are expensive and controlled by selective financial groups and entities. He argues that “the current system of international payments is costly, the system of associated accounts and its regulation are controlled by a small club of states and financial groups”.
Vladimir Putin wants to integrate blockchain technology into his legislation. Earlier in August, the Central Bank of the Russian Federation published a draft proposal outlining primary monetary policy for the next three years. This planned to release a digital ruble by 2024.
More recently, Russian lawmakers have revealed that they are working on a bill of amendment that will discuss establishing a national crypto exchange in Russia. For President Putin, the main benefit would be the possibility of a global payments framework not controlled by foreign powers.