Vladmir Putin, the president of Russia, has promoted the idea of using an alternative method for transferring money across borders and internationally that doesn’t rely on banks or other third parties.
Putin is convinced that utilizing decentralized and block chain technologies will promote convenience and speed up these transactions.
Putin Pushes For Decentralized Technology
In order to eliminate reliance on banks and third party services, President Vladmir Putin has pushed for an alternative method of international and cross-border payment and transfers.
The use of a digital currency and a blockchain system, he claimed, could be this alternative.
At a conference on artificial intelligence, Putin discussed this idea. In transactions and financial flows between nations that are under sanctions, such as the one between Russia and the west, he emphasized the significance of convenience.
He said at the outset that one of the powers the west had was over settlement rights, which used currencies which were largely in their favor. The statement went on to say that financial institutions are both aware of and vulnerable to this.
A System That Bypasses Sanctions
Also read:Putin was specifically referring to the sanctions that the west had placed on his nations due to the conflict between Russia and Ukraine. These sanctions had severely restricted its ability to access funding and financing from the international market.
Putin reportedly also made the point that the system under which international transactions operate is currently very expensive and is governed by a small number of powerful central entities.
He added that it is possible to create a system that would benefit the majority regardless of how events turn out based on this sector of distributed ledger and blockchain technology. He claimed that this system would make cross-border payments easy and more convenient, eliminating the need for banks and third-party systems for users.
When it comes to the adoption and spread of cryptocurrencies, Russia is seen as an advocate, pushing for it to be a widely used mode of payment, he added. He also strongly believes that regulation of cryptocurrencies is necessary to protect investors. He is now focusing on making cryptocurrency legal for use in international transactions.
The creation of a secure system for international payments was started by the Russian financial authorities in September.
According to a report, discussions are being held between Russia and Cuba, two countries that have been sanctioned, about the viability of developing a distributed ledger technology for international payments.
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