Russian President Keen on Having Blockchain-based Digital Payments System

Speaking at a Sberbank-organized artificial intelligence conference over the weekend, Russian President Vladimir spoke on the need of having a new independent international settlement system.


Mr. Putin said that this will be a new blockchain-based digital payments system independent of the involvement by any banks or any third-party interference. As a result, the new digital payments system shall be curated using a distributed ledger or a cryptocurrency technology.


This development comes as Russia has been facing strong financial sanctions and its ouster from the SWIFT system following its attack on Ukraine earlier this year.


Stressing further on this matter, Putin said: The technology of digital currencies and blockchains can be used to create a new system of international settlements that will be much more convenient, absolutely safe for its users and, most importantly, will not depend on banks or interference by third countries. I am confident that something like this will certainly be created and will develop because nobody likes the dictate of monopolists, which is harming all parties, including the monopolists themselves.”


Amid the ongoing tensions between Russia and the West, Putin said that global payments and nations are at a risk. He also called the sanctions imposed by the West as “illegitimate restrictions”.


The existing system of international payments is expensive, the system of its correspondent accounts and regulation are controlled by a narrow club of states and financial groups,” added Putin.


The Russian president blamed the financial groups controlling the international settlement for its high cost. Ever since strong financial sanctions have been imposed on Russia this year, the country has been exploring the use of digital assets and blockchain technology.


As several points in the past, they have also considered legalising the use of digital assets. Earlier this month, a bill was introduced in the lower house of parliament - Russian State Duma - for legalising the mining of digital assets as well as the scale of cryptocurrency mined.


Anatoly Aksakov, chairman of the Duma Financial Markets Committee, said that the passage of the law will bring this activity into the legal field, and make it possible to form a law enforcement practice on issues related to the issuance and circulation of digital currencies”.


On the other hand, the Russian lawmakers have also been discussing the introduction of amendments to the existing crypto legislation. The lawmakers are also considering laying a legal framework for a national crypto exchange.