Putin Urges for Blockchain-based International Settlements

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Key Takeaways:

  • To lessen reliance on large banks and third parties, Russian President Vladimir Putin thinks a new system for international money transfers is necessary.
  • The flow of money between nations and international payments, according to the Russian president, is a matter of worry.

Vladimir Putin, the president of Russia, agrees that the world necessitates a new digital payment system. In order to reduce reliance on central banks and other third parties, the Russian President believes that a completely new system is required for conducting international financial transactions. He is confident that the use of digital currency and distributed ledger technologies will make global transactions much simpler in the long term.

On November 24, during a speech at the International AI Journey Conference in Moscow, Putin criticised monopolies in world banking payment systems and called for a free-standing, blockchain-based settlement system.

Putin was speaking at a conference on artificial intelligence that was put on by Sberbank, the largest lender in Russia. He emphasised during his speech that due to strained relations between Russia and the West, international financial transfers and payments are currently in danger.

“Under the current unjustified restrictions, one of the lines of attack is through settlements, as we all very well know. The president continued, “And our financial firms know this better than anyone because they are exposed to these practices.”

The country’s ability to access the world financial market has been severely hampered by the sanctions that were put in place. Vladimir Putin is discussing the sanctions imposed on Russia as a result of its invasion of the neighboring Ukraine

Few days back,  local publications reported that lawmakers were debating changes to the current cryptocurrency legislation that would establish a legal foundation for a national exchange.

The delegates addressed the necessary amendments to the law “On Digital Financial Assets” with market players in mid-November. One of the participants noted that representatives of the Central Bank and the Ministry of Finance, two organisations that regulate the industry, were absent from the meeting.

The Russian leader claimed that the current system of international payments is expensive and governed by a small group of governmental and financial organisations. In essence, they project  monopolistic tendencies that  rule everything in the market.

In recent months, Russia has been considering extensive crypto regulations in light of growing support for the acceptance of cross-border cryptocurrency payments.

One of the most recent developments was the agreement between the finance ministry and TASS, the nation’s top bank, to legalize cryptocurrency for cross-border payments. TASS has been reconsidering the method of regulating cryptocurrencies.

Alexei Moiseev, Russia’s deputy finance minister, reportedly emphasised the need for local cryptocurrency services, saying that many Russians use foreign websites to create cryptocurrency wallets.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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