Russian President Vladimir Putin believes that international payment systems, should be processed digitally through a blockchain network. He spoke of the possible shift to cryptocurrency settlements during the International AI Journey Conference, organized by Russia's major government lender, Sberbank.
Putin Favors Crytpo
The Russian president proposed the payment system change, claiming that it would be more convenient, and safe, and won't depend on third parties like banks and other nations. He added that he is confident that the idea will take off, seeing as nobody wants to be dictated by monopolies. President Putin noted that the system used now can be expensive, as it is under the control of a "narrow club of states and financial groups."
Mainly, the Russian president pointed out the tension between his country and the West, regarding Russia's attempt to invade Ukraine. He stated that international payments and nations are at risk because of it, and called the sanctions imposed on Russia "illegitimate," and addressed that it was one of the lines of attack against his country.
It's Beginning to Look Promising
There are already reports of Russian lawmakers discussing the future of cryptocurrency amendments, as mentioned in the Coin Telegraph. If the discussions develop into a trajectory toward Putin's vision, the country will have a legal framework for national exchange. A bill has been introduced to the Russian State Duma, aiming to legalize the mining and sale of cryptocurrency.
Anatoly Aksakov, the chairman of the Duma Financial Market Committee, says that the passage of the law will allow law enforcement practices regarding the use and circulation of digital currencies. In the past month, Russia has already been thinking about comprehensive regulations for cryptocurrency, as mentioned in Bitcoin. The idea has gathered support for legalization concerning cross-border blockchain-based payments.
Read Also: Coinbase Blocks 25,000 Crypto Addresses of Russian Accounts
The President Changed His Mind
For some, this might be an unexpected change in President Putin's view of cryptocurrency. In July 2022, the Russian president signed a bill that prohibits the use of digital currencies like crypto and NFTs, to purchase goods and services. With this law, cryptocurrency exchanges are required to turn away digital assets that may appear as a form of payment.
US authorities believe that by using cryptocurrency, Russian companies are able to work around the limitations imposed on them, following the invasion of Ukraine. According to Engadget, there was a surge in the value of Bitcoin around February, which is when the invasion of Ukraine started happening.
Despite what President Putin is trying to accomplish now, which is Russia turning to blockchain-based settlements, Russian authorities didn't look too kindly at digital assets. In fact, the Central Bank of Russia even suggested that cryptocurrency should be banned completely. However, the Finance Ministry of the country believed that crypto was a necessary technology to develop.
Just as the US authorities assumed, Russia would be able to work around sanctions once the system for blockchain-based payments turns to law. There have already been reports saying that Russia and Cuba are already discussing the possibility, including the fact that both are under sanctions.
Related: Biden's Cryptocurrency Executive Order: Industry Leaders, Regulators React
