Russian President Vladimir Putin believes that a new system of international money transfers is needed to reduce dependence on large banks and third parties. He is convinced that cross-border payments based on digital currencies and distributed ledger technology will be “much more convenient.“
Russian head of state calls for international payments powered by blockchain.
Vladimir Putin has called for the creation of a new international settlements system, independent of banks and third-party interference. It can be created using digital currency technologies and distributed ledgers, the Russian leader said, as quoted by local media.
Putin was speaking at a conference dedicated to artificial intelligence and organized by Russia’s largest lender, Sberbank. During his speech, he stressed that financial flows and payments between nations are currently under threat amidst tense relations between Russia and the West.
“We all know very well that in today’s illegitimate restrictions, one of the lines of attack is through regulations. And our financial institutions know this better than anyone, because they are exposed to these practices“, said Vladimir Putin.
Vladimir Putin was referring to the sanctions imposed on Russian Federation following its invasion of neighboring Ukraine, which have severely limited its access to global finance and markets. According to a report by the Prime news agency, he also noted:
Today, the international payments system is expensive, with correspondent accounts and regulation controlled by a small club of states and financial groups.
“Based on the technologies of digital currencies and distributed ledgers, it is possible to create a new and much more convenient international payment system, but at the same time completely safe for the participants and completely independent of banks and interference from third countries“, explained Putin, also quoted by the crypto news outlets RBC Crypto and Bits.media.
In recent months, Russia has been mulling over comprehensive crypto-currency regulation, with growing support for legalizing cross-border crypto payments. In September, Moscow’s financial authorities began developing a mechanism for international crypto-currency settlements.