Russia Plans To Use Blockchain Technology for Global Payments System

Russia Plans To Use Blockchain Technology for Global Payments System

Key Insights

  • Vladimir Putin envisions a global payments network based on blockchain technology.
  • Artificial Intelligence makes payments more affordable, along with efficient transactions. 
  • Russia to lead such a payment network soon. 

Vladimir Putin, the President of Russia, highlighted blockchain technology's benefits at the Artificial Intelligence Journey 2022 international AI and machine learning conference. His speech indicated Russia would soon set up a global payments network based on blockchain technology.

Such a payment network would be beyond the control of foreign powers. The President also acknowledged the benefits of Artificial Intelligence, claiming it could make payments more affordable, along with efficient transactions. 

Putin Emphasizes Blockchain Benefits

Vladimir Putin put forth several benefits of blockchain technology and its decentralized and non-monopolized nature. He clearly states such technology could help both the state and its citizens and would soon become a global sensation. Evidently, he referred to monopolized power and how it harms third-world countries, including the monopolists.

It seems Putin's idea of setting up a global payments network soon came after its war with Ukraine and its consequences. With the USA imposing several financial sanctions, the country's international payments were restricted.

It also included restricting Sberbank's operations in other countries. In response to this, Puttin claimed the current payments system was "controlled by a narrow club of states and financial groups." According to him, it is time the country has its own payment system. 

The President also focused on developing Artificial Intelligence, emphasizing its benefits on the county's operations. In short, Puttin claims Russia will soon establish a cloud infrastructure to meet the country's demands without foreign influence and control. 

Putin to Change Stance on Crypto?

Russia has always had a controversial relationship with crypto, with the government changing its approach quite often. The current situation holds Puttin in the pro-blockchain camp. However, that does not indicate he or the country has a pro-crypto stance. In fact, Putin still maintains an anti-crypto approach. 

However, laws regarding crypto holdings and investments underwent several changes in Russia.

For instance, now Russian users can legally have crypto holdings. Having said that, the financial application of cryptocurrencies is still forbidden in the country. Thus, Russia is still transitioning between condemning and accepting crypto. In fact, reports claim that with Puttin's optimistic attitude towards blockchain technology, the country might soon have a national crypto exchange system. 

Putin's recent stand on blockchain technology indicates Russia's progress toward accepting the digital network, quite in contrast to its previous stance.

However, establishing a global payment network with blockchain technology or launching a national cryptocurrency exchange is still on the cards. No wonder the country has a long way to go to establish itself as a significant participant in the crypto market. 

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