In order to lessen reliance on large banks and third parties, Russian President Vladimir Putin thinks a new mechanism for international money transfers is necessary. He is certain that distributed ledger technology and digital currency will make cross-border payments “far more convenient.”
Russian President Calls for Blockchain-Powered Global Payments
Vladimir Putin, the president of Russia, has advocated for the creation of a brand-new system for international settlements that is free from banks and outside intervention. According to the Russian leader, who was quoted by local media, it can be produced using distributed ledger technology and digital currency technologies.
Putin was speaking at a symposium on artificial intelligence that was put on by Sberbank, the largest lender in Russia. He stressed throughout his speech that due to tense ties between Russia and the West, international financial transfers and payments are currently in danger.
“Under the current unjustified constraints, one of the channels of assault is through settlements, as we all very well know. The president continued, “And our financial institutions know this better than anyone because they are exposed to these tactics.
Vladimir Putin was referring to the sanctions put in place against the Russian Federation as a result of its invasion of the nearby Ukraine, which have severely restricted its access to international markets and finances. He added the following, per a report from the Prime news agency:
The current system of international payments is expensive and is governed by a small group of states and financial institutions through the use of correspondent accounts.
According to Putin, who was also quoted by the cryptocurrency news sites RBC Crypto and Bits.media, “Based on the technologies of digital currencies and distributed ledgers, it is possible to create a new system for international payments that is much more convenient, but at the same time completely safe for participants and completely independent of banks and interference from third countries.”
In recent months, Russia has been considering comprehensive crypto laws in light of growing support for the acceptance of cross-border cryptocurrency payments. The Moscow banking authorities began creating a system for international cryptocurrency settlements in September. According to a recent report, the subject is already being discussed by Cuba and Russia, both of which are subject to sanctions.