Putin Wants A Change to Settlements, And Crypto Is At Its Heart

Russia’s President, Vladimir Putin, has called out the monopoly of the global financial system. Putin said there was a need for an independent and blockchain-based financial network to support global settlements.

Russia’s President wants a blockchain-based international payment system

Putin shared his support for a blockchain-based payment system at the International AI Journey Conference held in Moscow. The event was organized by Sberbank, the leading bank in Russia, which is also a leading lender of the government.

Putin said that the technology supporting digital currencies and blockchain technology could be used to develop a new system supporting international settlements. According to the Russian President, these technologies would boost convenience in settlements and make it safer for users to use these platforms. Additionally, such systems would be less dependent on banks and third-party interference.

“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,” he added.

Putin added that the global payment sector was at risk because of the growing tensions between Russia and Western countries. Following the Russian invasion of Ukraine, the West has imposed multiple sanctions against Russia. However, Putin has said that these sanctions were “illegitimate restrictions.”

He added that the current system supporting global payments was an expensive one. He also added that the system of the correspondent accounts and the regulatory framework was under the control of a few states and financial companies.

Changing crypto regulatory framework in Russia

The crypto regulatory framework in Russia is set to undergo some changes, as seen in a series of recent developments. Besides the Russian President showing support for the technology supporting cryptocurrencies, lawmakers in the country have also been focusing on the crypto regulatory framework.

Local reports recently said that Russian lawmakers were holding talks to discuss changes to the existing legislation for crypto assets. The lawmakers were also discussing laying the legal framework that will support the operations of a national exchange.

On November 17, the Russian State Duma, which is the lower house of parliament, introduced a bill seeking to legalize cryptocurrency mining in the country. It also supported the sale of mined cryptocurrencies.

The chair of the Duma Financial Markets Committee, Anatoly Aksakov, said that if the bill is passed, it will bring crypto mining activities into the legal space. It would also support forming a law enforcement practice that would focus on various issues related to the issuance and circulation of digital assets.

Cryptocurrencies cannot be used to make settlements in Russia. Following the heavy Western sanctions imposed on the country, some cryptocurrency exchanges were forced to halt their services in Russia. There were also calls from global regulators to crypto firms to ensure that sanctioned Russian individuals and entities cannot use crypto assets to escape sanctions. On the other hand, Ukraine has received millions of dollars worth of crypto donations.

Related

• Vladimir Putin predicts the world will shift reserves from Western currencies
• Vladimir Putin bans the use of digital assets for payments
• Vladimir Putin Says Russia Not Interested in Developing National Cryptocurrency