Putin Calls for Blockchain-Based International Payment System

President of Russia Vladimir Putin has called for the establishment of a new system for international settlements, independent from banks and third-party interference, which can be created using digital currency technologies and distributed ledgers.

In fact, while speaking at the International AI Journey Conference in Moscow, an event organized by Sberbank, the largest Russian bank and a major lender to the government, he criticized the monopoly in global financial payment systems.

He 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.”

President Putin also spoke about the sanctions that were imposed on the Russian Federation for invading Ukraine, which have severely limited its access to global finances and markets.

He mentioned, "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."

He added, "Today, the system of international payments is expensive, with correspondent accounts and regulation controlled by a small club of states and financial groups."

It is important to note that this is not the first time that Russia discusses the matter, for the Central Bank has revealed that the country could re-consider using crypto for international payments, local news agency TASS reported on Sept. 5.

According to the report, Russia’s Deputy Finance Minister Alexei Moiseev said the apex bank and the finance ministry could legalize crypto payments soon.

Moiseev continued that Russians’ reliance on foreign platforms for crypto transactions further emphasizes the need to legalize the industry locally.