Priorities change depending on events, and the President of Russia may notice this. In a recent speech at the International Conference on Artificial Intelligence and Machine Learning AI Journey 2022, Vladimir Putin spoke about the benefits of using a global payment system based on blockchain technology.
For President Putin, the main advantage would be the ability to have a global payments framework that is not censored by foreign powers. But he also mentions that using this technology in combination with other developments (such as artificial intelligence) could make payments more efficient and affordable.
Blockchain-based Swift alternative?
President Vladimir Putin explained that the proper use of blockchain technology can be very beneficial for users and governments. He said that the decentralized and non-proprietary technology will eventually be spread globally due to the benefits it brings:
Cryptocurrency and blockchain technology can be used to create a new system of international settlements that will be more convenient and safer for its users, and most importantly, it will not depend on banks or interference from third countries. I am convinced that something like this will certainly be created and will develop because no one likes the dictates of monopolists, which harm all parties, including the monopolists themselves.
After the conflict between Russia and Ukraine, the United States and part of the international community imposed a series of economic sanctions against Russia. These sanctions have severely affected the country’s ability to make international payments, including the operations of Russia’s leading bank, Sberbank, in other countries.
The president further argued that the current payment system is inefficient and “controlled by a narrow club of countries and financial groups”.
Putin did not develop his idea of a blockchain payment system, but instead focused on the need for innovation in the field of artificial intelligence and the development of a cloud infrastructure that can meet the needs of the entire country.
Russia is slowly adopting cryptocurrencies
Of course, a payment structure based on blockchain technology is possible. However, President Putin did not expand on the proposal, leaving open the question of who would control the verification nodes in such a system. In the case of a permissioned blockchain network, if the governments themselves control the contract, the ability to censor transactions is as imminent as it is in the current payment system.
Russia has a love-hate relationship with cryptocurrency and blockchain technology. As of today, President Putin appears to be in the “anti-crypto blockchain pro” camp. Possession of cryptocurrencies is permitted in the country, but their use in payments and financial applications is strictly prohibited as they are considered activities that would imitate the nature of the ruble and infringe on the country’s sovereignty.
Recently, however, the country’s political position has become more flexible. In addition to the president’s calls to study the use of blockchain technology, there are reports that the country is opening up to the idea of approving the launch of a national cryptocurrency exchange.
A few days ago, the State Duma also started discussions to legalize cryptocurrency mining and token selling — something Putin also mentioned at the time.
The post of the Russian President Envisioning a Global Payment System Using Blockchain Technology appeared first on CryptoPotato.