President Putin Wants Blockchain-Based Global Payment
Vladimir Putin believes Russia might lead attempts to establish a worldwide payment system based on blockchain technology to escape “the control of a small group of powers.“
The president of Russia may recognise that priorities shift in response to changing circumstances. Vladimir Putin recently talked at the Artificial Intelligence Journey 2022 worldwide AI and machine learning conference on the benefits of utilising a blockchain-based global payment system.
The most significant benefit for President Putin would be the potential to create a global payment mechanism that is not controlled by foreign governments. However, he also notes that combining this technology with others (such as artificial intelligence) might make payments more efficient and cost-effective.
A Blockchain-Based Substitute For Swift?
President Vladimir Putin highlighted that the correct use of blockchain technology might be very advantageous for both individuals and governments. He said that a decentralized, non-monopolistic technology would ultimately be used internationally because of the benefits it offers:
“The technology of digital currencies and blockchains can be used to create a new system of international settlements that will be much more convenient, absolutely safe for its users, and, most importantly, will not depend on banks or interference by third countries. I am confident that something like this will undoubtedly be created and will develop because nobody likes the dictate of monopolists, which is harming all parties, including the monopolists themselves.”
After the Russia-Ukraine war, the United States and a portion of the international community placed a series of financial penalties on Russia. These sanctions significantly impacted the country’s capacity to make foreign payments, especially Sberbank’s overseas activities.
In addition, the president said that the present payments system was inefficient and “controlled by a narrow club of states and financial groups.”
Putin did not expand on his concept of a blockchain-based payment system, focusing instead on the need to innovate in artificial intelligence and create a cloud infrastructure capable of serving the demands of the whole nation.
Russia Is Gradually Adopting Crypto
A payment mechanism based on blockchain technology is undoubtedly feasible. However, President Putin did not elaborate on the suggestion, leaving unanswered who would manage the validating nodes in such a system. If governments control the nodes in a permissioned blockchain network, the opportunity to censor transactions is just as immediate as in the present payment system.
Russia’s relationship with cryptocurrencies and blockchain technology has been ambivalent. As of now, it looks like President Putin is in the “pro-blockchain, anti-crypto” camp. The possession of cryptocurrencies is permitted in the nation. Still, their usage in payments and financial applications is prohibited since these activities are seen to violate the country’s sovereignty by imitating the character of the Ruble.
Recently, though, the country’s political attitude has grown more adaptable. In addition to the president’s requests to investigate the usage of blockchain technology, there are rumours that the government is considering sanctioning the creation of a national cryptocurrency exchange.
Also, the Duma began discussing the legalisation of cryptocurrency mining and the selling of mined tokens a few days ago – something Putin stated at the time.
