Russia Calls For Blockchain-based International Payment System

Russian President Vladimir Putin said there is a need for a new and independent international settlement system amidst the sanctions and restrictions placed on his country.

President Putin said the new system would be independent of banks and third-party interference. He suggested creating a system based on digital currency and blockchain technology.

The President made this statement at a Sberbank-organized artificial intelligence conference. In his speech, Putin disclosed that international settlements are now threatened following the tense relations between Russia and the Western superpowers.

Putin said it was “possible to create a new system of international payments based on digital currency technologies and distributed registries, much more convenient, but at the same time completely safe for participants and independent of banks and third-party interference.”

Putin Says Current System is Expensive

Similarly, the President described the current international payment method as expensive. Putin said that financial groups controlling the international settlement are to blame for its high cost.

“Today, the system of international payments is expensive, with correspondent accounts and regulation controlled by a small club of states and financial groups.”

While describing the West’s sanction on Russia as illegitimate restrictions, Putin noted that international settlements are now a point of attack. “And our financial institutions know this better than anyone because they are exposed to these practices,” he added.

Russia Embraces Crypto to Boycott Sanctions

In March, the Bank for International Settlements suspended Russia from using its services following its invasion of Ukraine.

Since then, Russia has made several pro-crypto moves and attempts at boycotting the imposed sanctions. The country has also increased its support for legalizing cross-border crypto payments.

BeinCrypto reported on November 24 that Russia was working on a law establishing a national cryptocurrency exchange. The country’s legislators were also working on a draft that legalized digital currency mining in Russia.

Iran is also another country that has attempted to boycott western sanctions through crypto use. The Asian country completed a $10 million import order payment using crypto in August.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

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