In light of the sanctions faced by his nation, Russian President Vladimir Putin stated that a new and independent international payment system is required.
According to President Putin, the new system would be free from financial interference and outside meddling. He proposed developing a system using blockchain technology and digital cash.
The President said this at a symposium on artificial intelligence that Sberbank hosted. In his speech, Putin stated that the difficult relations between Russia and Western superpowers had threatened international agreements.
According to Putin, it is possible to build a new system of international payments based on distributed registries and digital currency technologies. It is considerably more convenient yet entirely safe for participants and independent of banks and third-party meddling.
Putin claims the current system is costly.
The President also criticised the price of the current international payment system. Putin claimed that the financial organisations in charge of the global settlement are to fault for their astronomical cost.
Putin stated that international settlements are now a target of attack and referred to the sanctions imposed on Russia by the West as unlawful limitations. Because they encounter these tactics, Russian financial institutions know this better than anyone.
Russia uses cryptocurrency to circumvent sanctions
After it invaded Ukraine in March, the Bank for International Settlements barred Russia from utilising its services.
Since then, Russia has taken several pro-crypto actions and tried to circumvent the restrictions that have been put in place. Additionally, the nation is more in favour of allowing international cryptocurrency payments.
On November 24, it was reported that Russia was drafting legislation to create a national cryptocurrency exchange. Legislators in the nation were also drafting a bill to sanction crypto mining there.
Another nation that has used crypto to try to circumvent western sanctions is Iran. In August, the Asian nation paid a $10 million import order using cryptocurrency.