Russia’s president envisions a global payment system with blockchain technology

Priorities change according to the events and the President of Russia can notice it. In a recent speech at the international AI and machine learning conference Artificial Intelligence Journey 2022, Vladimir Putin spoke about the benefits of using a global payment system based on blockchain technology.

For President Putin, the primary benefit would be the ability to have a global payments framework uncontrolled by foreign powers. However, he also mentions that using such technology together with other developments (such as artificial intelligence) can make payments more efficient and affordable.

A Blockchain-Based Swift Replacement?

President Vladimir Putin explained that the proper use of blockchain technology can be very beneficial for users and governments. He said that a decentralized, non-monopolistic technology will eventually be deployed globally because of the benefits it brings:

The technology of digital currencies and blockchains can be used to create a new system of international settlements that will be much more convenient, completely safe for users, and, most importantly, will not depend on banks or interference from third countries. I am sure that something like this will certainly be created and will develop because no one likes the dictates of the monopolists, which harms all parties, including the monopolists themselves.

After the conflict between Russia and Ukraine, the United States and part of the international community introduced a number of economic sanctions against Russia. These sanctions severely affected the country’s ability to make international payments, including the operations of Russia’s leading bank, Sberbank, in other countries.

The president further argued that the current payment system was inefficient and “controlled by a narrow club of states and financial groups.”

Putin did not elaborate further on the idea of ​​a blockchain payment system, focusing instead on the need to innovate in artificial intelligence and develop a cloud infrastructure capable of meeting the needs of the entire country.

Russia is slowly accepting crypto

Of course, a payment structure based on blockchain technology is possible. However, President Putin did not expand on the proposal, leaving open the question of who would control the validation nodes of such a system. In the case of a permissioned blockchain network, if the government itself controls the nodes, the ability to censor transactions is as imminent as it would be in today’s payment system.

Russia has had a love-hate relationship with cryptocurrencies and blockchain technology. As of today, President Putin appears to be in the “pro-blockchain anti-crypto” camp. Holding of cryptocurrencies is allowed in the country, but their use in payments and financial applications is strictly prohibited as they are considered activities that would mimic the nature of the ruble, and violate the country’s sovereignty.

However, the country’s political stance has become more flexible recently. In addition to the president’s calls to study the use of blockchain technology, there are reports that the country is opening up to the idea of ​​approving the launch of a national cryptocurrency exchange.

A few days ago, the Duma started discussions to legalize cryptocurrency mining and the sale of mined tokens – something Putin also mentioned at the time.