Russian President Vladimir Putin Stresses the Need for a Bank-free International Digital Payment System

Russian President Vladimir Putin agrees that international transactions require an updated digital payment infrastructure. In the future, he is confident that international transactions utilizing digital currency and technology based on distributed ledgers would be simpler.

Russian President Vladimir Putin has come a long way since he banned the use of digital assets for payment in Russia just four months ago. A law that had been signed into effect by the president at the time prohibited the use of digital securities and utility tokens as a payment mechanism for goods, services, and products in Russia.

Now, however, the President states that international payments and the flow of financial resources between Russia and other countries are in jeopardy due to the escalating enmity between Western nations and Russia.

Putin delivered his remarks at a Sberbank-hosted symposium on artificial intelligence. Sberbank is the largest financial institution in the country.

We all know very well that under today’s illegitimate restrictions, one of the lines of attack is through settlements. And our financial institutions know this better than anyone because they are exposed to these practices.

Vladimir Putin

In the past few months, Russia has deliberated over a comprehensive set of crypto rules, and there has been rising support for the international legality of crypto payments.

Putin continued by stating that it is possible to construct a new system for international payments that is significantly more convenient, entirely secure for participants, and completely independent of banks and foreign interference. This new system may utilize digital currency and distributed ledger technologies.

Russia and Cryptocurrencies

The Russian Ministry of Finance introduced a bill to the country’s parliament in February that would regulate cryptocurrencies and provide a legal framework for them.

This stands in stark contrast to the viewpoint of the Bank of Russia, which has called for the prohibition of a cryptocurrency-related activity.

This year, the country has received more attention due to suspicions that it evaded sanctions imposed in response to its invasion of Ukraine by using cryptocurrencies.

These legislators are currently working on amendments. It has been reported that both the Russian Ministry of Finance and Central Bank support this plan. The State Duma, the lower chamber of the Russian Federal Assembly, has initiated the process of drafting an amendment that would establish a national cryptocurrency exchange.

Sergey Altuhov, a member of the Duma’s Committee on Economic Policy, stressed the fiscal rationale of such measures, noting that it makes no sense to deny the existence of cryptocurrencies; rather, the problem is that they circulate unchecked in large quantities.

Notably absent from the conference were representatives from the Ministry of Finance and the Central Bank, both of which regulate the industry.

It is anticipated that a paper reflecting the present market conditions would be drafted first. The paper will then be offered for discussion with the government and the Bank of Russia.

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