Just In: Russia President Orders For Creation of a Digital Payment System for International Settlements

• Vladimir Putin sees the need to develop firm financial systems to avoid dependence on banks and third parties.
• The Central Bank of Russia issued a report stating that the country was preparing for the adoption of digital assets into the economy.

President Vladimir Putin of Russia has called for the establishment of a new international payment system that is independent of external interference.

Speaking at an artificial intelligence conference hosted by Sberbank, Putin said that the current international payment system is “extremely pricy” and “controlled by a narrow club of states and private clubs.” He argued that a new system based on digital currency technologies and distributed ledgers could be more convenient, safe, and independent.

Putin’s comments come amid growing tensions between Russia and the West. The United States and its allies have imposed sanctions on Russia in response to its invasion of Ukraine. These sanctions have disrupted Russia’s economy and made it difficult for the country to conduct international payments.

Putin believes that a new payment system based on crypto could help Russia to bypass these sanctions. He also sees it as a way to create a more multipolar financial system that is not dominated by the United States.

The Russian government has been exploring the use of crypto for several years. In 2021, the Central Bank of Russia proposed banning the use of crypto in the country. However, the government has since softened its stance on crypto, and a bill that would legalize cryptocurrency mining and create a local crypto market is currently being considered by the Duma.

If the bill is passed, Russia would become one of the most crypto-friendly countries in the world. This would give Russia a significant advantage in the race to develop a new international payment system based on crypto.

It remains to be seen whether Putin’s proposal for a new payment system will be successful. However, his comments suggest that Russia is serious about developing a more independent financial system.