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](http://en.kremlin.ru/events/president/news/69927) 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](/news/category/blockchain-news) 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](/news/article/russia-approves-cross-border-crypto), users cannot use cryptocurrency for their respective settlements.


Putin's Blockchain Payment System

Vladimir Putin, the President of Russia, believes cryptocurrencies have value but are not yet ready to be part of energy trading.

Saying it was too early for crypto to replace the US dollar in oil trades, Putin also pointed to the energy consumption of cryptocurrencies as a possible obstacle to widespread use.

His comments come just months after Alexander Novak, Russia’s deputy prime minister, suggested the country could abandon the use of US dollars for oil contracts in response to ongoing economic sanctions.

## 'Crypto Has Value'

Putin was speaking at the Russian Energy Week event in Moscow on Wednesday when he said it’s ‘too early to talk about the trade of energy resources in crypto’.

In conversation with CNBC’s Hadley Gamble, Putin added: ‘I believe that it has value, but I don’t believe it can be used in the oil trade.

‘Cryptocurrency is not supported by anything as of yet. It may exist as a means of payment, but I think it’s too early to say about the oil trade in cryptocurrency.’

While Putin believes it may be too early for crypto to trade Russia’s key export, oil, he was outspoken about reliance on the dollar.

Putin told [CNBC](https://www.cnbc.com/world/?region=world): ‘I believe the US makes a huge mistake in using the dollar as a sanction instrument. We are forced. We have no other choice but to move to transactions in other currencies.

‘In this regard, we can say the United States bites the hand that feeds it. This dollar is a competitive advantage. It is a universal reserve currency, and the United States today uses it to pursue political goals, and they harm their strategic and economic interests as a result.’

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Putin's Blockchain Payment System

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