Vladimir Putin Calls For Creation Of Digital Payment System Based On Blockchain.
In an attempt to criticize the Western countries’ sanctions against them, Russian president Vladimir Putin has called for a new payment system “uncontrolled by foreign powers.”
In a recent speech at the International AI Journey Conference in Moscow, president Putin explains his wish for a new blockchain-based payment system, claiming that this new technology could be highly beneficial in the future due to its multiple advantages.
“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.” Putin said, “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.“
On November 17, the Russian State Duma initiated a bill legalizing cryptocurrency mining and the sale of mined cryptocurrency
Putin's recent comments supporting blockchain and digital currencies is a nod to this bill that will facilitate its passage
— Samuel Ramani (@SamRamani2) November 28, 2022
During his speech, Putin also emphasizes how current global payment systems are limited and at risk due to the current tense relations between Russia and Ukraine. The president refers to sanctions made by the West against Russia as “illegitimate restrictions” in financial flow.
“We all know very well that under today’s illegitimate restrictions, one of the lines of attack is through settlements. And our financial institutions know this better than anyone because they are exposed to these practices.” Putin stated.
Putin & Russia On Crypto & Blockchain
For a long time, Russia seemed to have a mixed relationship towards blockchain technology and cryptocurrencies, with crypto strictly forbidden from being used in payments and financial applications.
However, recently it seems that Russia is slowly opening its arms towards the idea of accepting digital currencies within its country. Just last month, a bill was introduced into the Russian State Duma which would legalize the mining of cryptocurrencies as well as the sale of those cryptocurrency mined.
Aside from that, there have also been news that Russian lawmakers are in discussion of making changes to the current legislations on cryptocurrencies, possibly opening up to the idea of launching their own national cryptocurrency exchange.