Putin's Blockchain Payment System
Vladimir Putin, President of Russia, talking at the International AI Journey Conference in Moscow on 24 November, criticised the monopoly in global financial payment systems and advocated for an independent, blockchain-based settlement network. Sberbank, Russia's largest bank and a primary lender to the government, hosted the event.
Putin aims to introduce new blockchain payment
Putin thinks that digital currencies and blockchain technology could be used to create a new international settlements system that is more convenient, safe for its users, and, most importantly, does not rely on banks or third-party meddling. He believes that something comparable will grow and evolve since no one likes monopolists' control, which damages all parties, even the monopolists themselves.
Why Putin believes the new blockchain payment is the way forward
Putin also warned that global payments and nations are in jeopardy because of strained links between the West and Russia in the aftermath of Ukraine's invasion, labelling national sanctions as unlawful limits.
According to Putin, the current international payment system is expensive, and a small number of states and financial firms control its account system and regulation forms.
Lawmakers in talks to change rules concerning blockchain payments
The day before Putin's speech, local media reported that officials were discussing modifying current cryptocurrency legislation to create a legal foundation for a nationwide exchange.
Another recent event was the introduction on 17 November of a bill into Russia's State Duma, the lower house of parliament. It authorises cryptocurrency mining and the selling of the cryptocurrency created.
The measure defines mining and mining pools legally and would establish a local cryptocurrency market, marking Russia's next move toward integrating digital assets into its economy.
Anatoly Aksakov, Chairman of the Duma Financial Markets Committee, believes that the passing of the bill will bring this activity into the legal sphere and allow for the formation of a law enforcement practice on matters relating to the creation and circulation of digital currencies. In Russia, users cannot use cryptocurrency for their respective settlements.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.