Vladimr Putin has called for a crypto and blockchain-based payment systems that would not be affected by banks or any third parties. Putin said that the new system should include a digital currency to conduct transactions, and should be independent from banks and third-party intervention. Putin failed to mention that he’s proposing this to avoid sanctions and fund his war against Ukraine.
Is anyone going to take anything he says seriously?
Putin: Blockchain backer?
It’s obvious why Putin has changed course on crypto-he’s running out of money (and troops) to wage his horrific war against Ukraine. And now suddenly he’s a fan of blockchain?
Putin and Blockchain
Putin has called for establishing a new international settlement system that is independent of banks and third-party interference, that could be created using digital currency technology and distributed ledgers.
During the event, Putin said blockchain technologies could be used to build a new system of international settlements, one which would be far more convenient, completely secure to its users, and, importantly, would not be dependent on banks or on the intervention of third countries.
Putin, emphasized the need for a new system of international payments, which is based on digital currency technologies. However, he criticized monopolies and reliance on large banks on global financial payment systems.
In his recent address to AI Journey 2022, an international AI & Machine Learning conference, Russia’s president spoke about the benefits of using a blockchain-based global payment system.
Putin said the current system for international payments is costly, with a small group of countries and financial organizations controlling its regulations and correspondent accounts systems.
Granted, the existing system of international payments is expensive, and the correspondent account and regulatory system is controlled by a narrow circle of states and financial groups.
Putin has accused financial groups that control international payments for high costs in the existing method of international payments.
Yet again, he is the last person on the planet who should have any say in its reform.
Poor Putin, he’s running out of money
Putin continued to bloviate, saying that existing worldwide payments and financial transactions among countries are at risk. In addition, he said there is a need for a new, independent system of global settlements in view of sanctions and restrictions placed on his country.
Putin also spoke on sanctions that were placed on the Russian Federation due to its invasion of Ukraine, severely restricting Russia’s access to global financial and markets.
In March, the Bank of International Settlements suspended its services for Russia following the invasion of Ukraine. This development comes as Russia has faced harsher financial sanctions and the withdrawal from the SWIFT system following its assault on Ukraine earlier this year.
With Western sanctions imposed against Russia, its leaders are looking towards blockchain technology as a way of strengthening the world’s financial system. Once again, Russia is considering using blockchain technology to counter Western monopolies in the financial system.
Putin wants his own cryptocurrency exchange!
You thought FTX was bad? Step up if you want to be the first in line to open an account on Putin’s exchange.
In addition, Putin called for research into blockchain technology, reports have emerged the country is opening to the idea of green-lighting the launch of a domestic cryptocurrency exchange.
Russia: A crypto haven of convenience?
Local Russian media reported that lawmakers proposed amending existing legislation, as well as the legal basis of a nationwide crypto-exchange.
Earlier this month, the lower house of the Parliament — Russia’s State Duma — introduced legislation legalizing digital asset mining, along with scaling up mining operations of cryptocurrency.
Russia has been deliberating on establishing a full cryptocurrency regulation over the last month, with increasing support for the legalization of cross-border cryptocurrency payments. Recent reports suggest Russia is working to revise its existing cryptocurrency law, including unbanned cryptocurrency payments.
During an address to an AI conference organized by Sberbank, Putin also pointed out flaws with the existing payments system. Putin did not further explain his ideas for blockchain-based payment systems, instead focusing on the need for innovation in AI, as well as developing cloud infrastructure that can serve Russian needs.
Putin: He only wants to make the world a better place
The Russian president went on to emphasize how not only Russia, but all countries worldwide, are disadvantaged by using the current system, which is controlled by a relatively small number of countries and of course Vlad would love to join that club.
Final thoughts
No one should be fooled by Putin’s sudden conversion to all things crypto. A year ago he wouldn’t have known a blockchain from a babushka. Now that his war of attrition is exacting real consequences on the oligarchs that keep him in power at home, Putin is suddenly interested in reforming the international monetary system that has rightfully excluded Russia.
Jay Speakman is a technology writer based in San Francisco, California. He writes on the topics of blockchain, cryptocurrency, DeFi and other disruptive technologies. Clients include Avalanche, Be[in]Crypto, Trust Machines and several blogs devoted to blockchain gaming. He will not rest until fiat currency is defeated.
