Russia Seeks To Integrate Blockchain Into Global Payment System

President of Russia believes in the establishment of a worldwide payment system that is immune to external influence using blockchain tech.

The President of Russia may be adjusting his priorities in light of recent developments. In a recent speech at the Artificial Intelligence Journey 2022 international AI and machine learning conference, Vladimir Putin spoke of the advantages of implementing a worldwide payment system based on blockchain technology.

The most significant benefit, in President Putin’s view, would be the establishment of a worldwide payment system that is immune to external influence. However, he also emphasizes that utilizing such technology in association with other technologies might make payments more efficient and economical. Putin didn’t go into detail about his plan for a blockchain-based payment system, instead he clearly emphasized the need to advance AI innovation and build a cloud infrastructure that can support the entire country.

According to President Putin, users and governments alike stand to gain greatly from governments adopting blockchain technology. He predicted that the benefits of a decentralised, non-monopolistic technology would lead to its eventual global deployment. 

“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,” said Putin while adding that he is “confident that something like this will certainly be created and will develop because nobody likes the dictates of monopolists, which is harming all parties, including the monopolists themselves.”

Russia Gradually Turns To Crypto

Following the outbreak of violence between Russia and Ukraine, the United States and other countries implemented a series of economic sanctions against Russia. U.S. authorities have announced the elimination of a Russian-Venezuelan network that used Tether (USDT) to evade sanctions and operate outside of the formal financial system.  

Despite the mass of existing international financial sanctions, the Central Bank of Russia (CBR) is determined to incorporate cryptocurrency and blockchain technologies into Russia’s domestic financial economy. As a result, CBR is actively investigating potential techniques for attaining this integration.