Russian President Calls for International Payment System based on Blockchain Technology

Russian President Calls for International Payment System based on Blockchain Technology

The president of Russia, Vladimir Putin, has called for the development of a blockchain-based international payment system. This is an interesting development, as it could help to reduce the dependence on traditional systems like SWIFT. It remains to be seen how this will play out, but it’s clear that blockchain technology is gaining traction in the world of finance.

Russia Calls for Blockchain Technology 

President Vladimir Putin of Russia has called for the development of an international payment system based on blockchain technology. Speaking at the International Al Journey Conference in Moscow, President Putin criticized Western sanctions and urged for a system “independent of external interference.” President Putin also stated that Russia is ready to cooperate with other countries in the development of this digital currency. The Russian president’s comments come as the world’s major central banks are exploring the use of blockchain technology for international settlements. 

While the idea of a digital currency has been met with skepticism by some, it is clear that blockchain technology has the potential to revolutionize the way international payments are made. With its ability to provide a secure and transparent platform for transactions, blockchain could provide a much needed boost to global trade. As such, it will be interesting to see how President Putin’s call for a international payment system based on blockchain technology is received by the global community.

Russia Advancing for Blockchain and Crypto Adoption 

Since the past week, it has been noticed that Russia is aggressively moving towards blockchain and crypto adoption. During the past week, it was reported that Russian lawmakers are working on amendments to the country’s existing cryptocurrency legislation that would pave the way for the launch of central-backed crypto exchange. 

Another recent development was the introduction on Nov. 17 of a bill into Russia’s State Duma, the lower house of parliament, legalising cryptocurrency mining and the sale of the cryptocurrency mined.

Anatoly Aksakov, chairman of the Duma Financial Markets Committee, believes that “the passage of the law will bring this activity into the legal field, and allow for the formation of a law enforcement practise on issues related to the issuance and circulation of digital currencies.” In Russia, cryptocurrency cannot currently be used for settlements.

In September, it was reported that Russia is in the pilot phase of launching its CBDC and it could use its national digital currency to settle international trade and payments. 

But Why Russia is Focusing on Digital Currencies 

In recent years, western sanctions have caused major disruptions to Russian payment connectivity and relations. As a result, the country has been seeking ways to re-establish its international payment network. One avenue that has shown promise is digital currency and blockchain technology.

By adopting digital currencies, Russia would be able to conduct transactions without going through western financial institutions. This would reduce the impact of sanctions and allow the country to continue doing business internationally. Additionally, blockchain technology could help to streamline many of the country’s domestic processes, making it more efficient and effective overall.

Therefore aggressively pursuing digital currency and blockchain adoption makes perfect sense for Russia. It is a way to circumvent western sanctions and re-establish payment connectivity on a global scale. In the long run, this could prove to be a major competitive advantage for the country.

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