Cointime

Download App
iOS & Android

Russia’s President Envisions a Global Payments System With Blockchain Technology

Priorities change according to the events, and Russia’s president may be taking notice. In a recent speech at the Artificial Intelligence Journey 2022 international AI and machine learning conference, Vladimir Putin spoke of the advantages of using a global payment system based on blockchain technology.

For President Putin, the primary advantage would be the ability to have a global payments framework uncontrolled by foreign powers. However, he also mentions that using such technology in conjunction with other developments (such as artificial intelligence) could make payments more efficient and affordable.

A Blockchain-Based Swift Substitute?

President Vladimir Putin explained that the proper use of blockchain technology could be highly beneficial for users and governments. He said that a decentralized, non-monopolistic technology will eventually be deployed globally because of the advantages it provides:

The technology of digital currencies and blockchains can be used to create a new system of international settlements that will be much more convenient, absolutely safe for its users, and, most importantly, will not depend on banks or interference by third countries. I am confident that something like this will certainly be created and will develop because nobody likes the dictate of monopolists, which is harming 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 financial sanctions against Russia. These sanctions strongly affected the country’s ability to make international payments, including the operations of Russia’s leading bank, Sberbank, in other countries.

The president further asserted that the current payments system was inefficient and “controlled by a narrow club of states and financial groups.”

Putin did not elaborate further on his idea of a blockchain payments system and instead focused on the need to innovate in the field of artificial intelligence and develop a cloud infrastructure capable of meeting the entire country’s needs.

Russia is Slowly Embracing Crypto

Of course, a payment structure based on blockchain technology is possible. Still, President Putin did not expand on the proposal, leaving aside the question of who would control the validating nodes of such a system. In the case of a permissioned blockchain network, if governments themselves control the nodes, the ability to censor transactions is as imminent as it would be in the current payment system.

Russia has had a love-hate relationship with cryptocurrencies and blockchain technology. As of today, President Putin appears to be in the “pro-blockchain anti-crypto” camp. The holding of cryptocurrencies is allowed in the country, but their use in payments and financial applications is strictly forbidden as they are considered activities that would imitate the nature of the Ruble, infringing on the country’s sovereignty.

However, the country’s political stance has become more flexible recently. 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.

Also, a few days ago, the Duma started discussions to legalize cryptocurrency mining and the sale of mined tokens -something Putin also mentioned at the time.

Comments

All Comments

Recommended for you

  • Russian Foreign Minister Lavrov: Meeting with U.S. Secretary of State Rubio Scheduled for Tomorrow

    On July 22, Russian Foreign Minister Lavrov stated that the meeting with U.S. Secretary of State Rubio has been scheduled for tomorrow.

  • Supermicro Surges Over 14% Pre-Market as Q4 Gross Margin Doubles Guidance, New Orders Exceed $60 Billion

    On July 22, AI server manufacturer Supermicro (SMCI.US) surged over 14% in pre-market trading to $29.17. On the news, the company released preliminary results for the fourth fiscal quarter ended June 30. The company's GAAP and non-GAAP gross margins are expected to be between 15% and 17%, nearly double the previously guided range of 8.2% to 8.4%. Management attributed this better-than-expected performance to favorable customer structure and product mix. Meanwhile, the company's total new orders for the quarter exceeded $60 billion, a record high.

  • US Optical Communication Stocks Fall in Pre-market, Marvell Down Over 2%

    On July 22, US optical communication concept stocks fell collectively in pre-market trading, with Astera Labs, Coherent, Credo Technology, Ciena, AXT Inc, and MaxLinear falling more than 3%, and Fabrinet, Lumentum, Corning, Applied Optoelectronics, Tower Semiconductor, Marvell Technology, POET Technologies, and GlobalFoundries falling more than 2%.

  • US AI chip stocks fall pre-market, Intel down 3%

    On July 22, US stock market AI chip stocks generally fell before the market open, with Intel down 3%, TSMC, AMD, and Qualcomm down over 2%, Broadcom down nearly 2%, and NXP and Nvidia down over 2%.

  • Russia Develops 150nm Lithography Machine, Performance Comparable to Pentium 4 from 20 Years Ago

    On July 22, according to Fast Technology, Russia's Green City Nanotechnology Center (ZNTC) has successfully developed a prototype of an electron beam lithography machine (ELL) with a design standard of 150nm. The project is a key research and development task under the framework of Russia's national plan for scientific and technological development, codenamed Progress ELL 150. This device is mainly used for manufacturing photomasks, and can also directly draw circuit patterns on substrates without using masks. The 150nm process roughly corresponds to the performance level of Intel's Pentium 4 from 20 years ago. In 2025, ZNTC demonstrated a similar device with 350nm resolution, and has now advanced to 90nm and 130nm technology nodes. Industry experts point out that such equipment is only suitable for small batch production of specialized chips in fields such as aerospace and defense.

  • Beijing State-owned Capital: Nearly 10 Billion Yuan Allocated to Stock Market from Own Funds

    On July 22, Beijing State-owned Capital Operation and Management Co., Ltd. announced that, as of now, it has allocated nearly 10 billion yuan from its own funds to invest in the stock market. Going forward, the company will continue to support listed company stocks using its own funds and through its subsidiaries, including securities firms and public funds, while also backing the development of the Beijing Stock Exchange. Rooted in its functional role as a state-owned capital operator, the firm is committed to safeguarding the strategic value of core assets of listed companies and contributing to the stable and healthy growth of the capital market through concrete actions, as a state-owned enterprise based in Beijing. (Beijing State-owned Capital)

  • U.S. Stock Futures Fall, Major Indices Decline

    U.S. stock futures are lower, with Nasdaq 100 futures down 1%, S&P 500 futures down 0.4%, and Dow futures down 0.3%.

  • Japan's Two-Year Government Bond Yield Rises to 1.47%, First Time Since 1995

    Japan's two-year government bond yield rose to 1.47%, the first time since 1995.

  • WTI and Brent Crude Surge Over 4%

    On July 22, international oil prices surged rapidly. WTI crude oil futures rose over 4% to $87.77 per barrel; Brent crude oil futures rose over 4% to $94.71 per barrel.

  • Bank of Japan Reportedly Willing to Raise Rates Faster Than Once Every Six Months

    On July 22, the Bank of Japan is reportedly willing to raise interest rates at a pace faster than once every six months.