Russian President Putin says independent blockchain-based payment network will be “much more convenient” than existing system

A new blockchain-based international payment system could soon take shape, if Russian President Vladimir Putin has his way.

The remarks by Putin about a potential blockchain-based digital payment system were made during a conference on artificial intelligence (AI) hosted by major Russian bank Sberbank. And according to Putin, it is the international sanctions against Russia that have highlighted the need for an alternative payment system.

“All of us know very well that settlements are one of the possible methods of attack under the current circumstances of illegal restrictions. Our financial institutions know this better than anyone because they work under them,” the president said in his speech at the event.

The Russian president has for some time now made it clear that he is keen to develop alternatives to the current international payment system, which he believes is controlled by the West. Following Russia’s invasion of Ukraine, Western governments cut off access to the SWIFT international payments network for a number of Russian banks, while also freezing reserve assets held abroad by the Russian central bank.

“The current system of international settlements is expensive, and the system of correspondent accounts and regulation is controlled by a small club of states and financial groups,” Putin said in the speech. He added that this “club”, in his view, acts as “the masters of the universe who have monopolized control over everything.”

Putin went on to explain to the audience how a system with a decentralized ledger – which is what characterizes most cryptocurrencies – could make payments “more convenient”.

“Based on the technologies of digital currencies and distributed ledgers, it is possible to create a new system of international payments, and much more convenient, but at the same time completely safe for participants and completely independent of banks and interference from third countries,” said the Russian president.

Changing attitude towards crypto

The speech came as Russia is considering new and comprehensive rules for crypto. Among other things, a new draft bill that essentially legalizes international crypto payments and regulates the mining industry in Russia has been submitted to parliament. In addition, Russian lawmakers as recently as last week announced a plan that could see the nation create a state-run crypto exchange.

In the past, crypto use has been heavily restricted in Russia, and the authorities have seemed opposed to it. Most notably, the Russian central bank has taken a fiercely anti-crypto stance and resolutely refutes the idea of ​​allowing crypto “into the Russian economy.”