By George Ward
Vladimir Putin, Russia’s President, recently stated that the country needs an independent and new foreign payment system. He noted that this would help Russia to evade western sanctions.
According to Putin, this new system would be void of third-party interference. Also, it would not depend on banks as it would depend on blockchain technology.
In a recent conference, Vladimir Putin criticized the present international payment system. Putin argued that the system is highly monopolized. Hence, there’s a need for another approach.
The president noted that the new system should be independent and based on blockchain tech. At the conference sponsored by Sberbank, Russia’s largest bank, Putin said, “we can use crypto and blockchain technology to develop a new international payment system.”
He further said, “this payment system will outdo the present one in terms of safety and convenience. Also, it would not depend on third-party interference and banks.”
Putin expressed optimism that such a system would be available soon as most countries are tired of monopolists. In addition, the Russian president argued that its international payment is at risk due to western sanctions.
He labeled the restrictions imposed on Russia as “illegitimate.” “The current international payment system is expensive. Also, a few financial groups and states control the system and regulation of the accounts under it,” Putin added.
Earlier in March, the BIS (Bank for International Settlements) suspended the country following its invasion of Ukraine, leading to several deaths. Ever since, the government has attempted to bypass the sanctions imposed, including taking several pro-crypto steps.
Russia To Legalize Crypto Mining
Additionally, the nation recently greenlighted the usage of crypto for cross-border payments. On November 17th, lawmakers presented a bill to Russia’s lower parliament, State Duma.
The bill aimed to legalize the activities of crypto mining in the country. Anatoly Aksakov, the Chair of the Duma Financial Markets Committee, said the legislation would make crypto mining legal in Russia.
Furthermore, Aksakov stated that the bill would also control the issuance and circulation of crypto in Russia. Presently, the usage of crypto for payment is banned in Russia.
A few months ago, Putin signed a bill banning crypto payments in the country. However, recent reports claim that Russia was working on amending the current crypto bill, including unbanning crypto payments.
The bill’s amendment would also allow the creation of a national crypto exchange.