Russia calls for Blockchain-based international payment system

Russian President Vladimir Putin said a new and independent international settlement system is needed amid sanctions and restrictions placed on his country.

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

The president made this statement at a Sberbank-organized conference on artificial intelligence. In his speech, Putin revealed that international settlements are now under threat following the tense relationship 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 ledgers, much more convenient, but at the same time completely safe for participants and independent of banks and third-party interference.”

Putin says the current system is expensive

In the same way, the president described today’s international payment method as expensive. Putin said financial groups that control the international settlement are to blame for the high costs.

“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 Western sanctions against 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 after the invasion of Ukraine.

Since then, Russia has made several pro-crypto moves and attempts to boycott the imposed sanctions. The country has also increased support for the legalization of cross-border crypto payments.

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

Iran is also another country that has tried to boycott Western sanctions through crypto use. The Asian country finished 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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