Putin is certain that the implementation of decentralized technology like block chains and distributed ledgers would provide increased speed and convenience for these transactions.

Putin is an advocate for technology that is not centralized.

President Vladmir Putin has been pushing for an alternate means of international and cross-border payment and transfers in order to reduce the government's dependency on banks and services provided by third parties.

According to him, one option may be the utilization of a blockchain technology in conjunction with a digital currency.

Putin presented and debated this concept at a conference centered on artificial intelligence. He stressed the relevance of convenience in the transactions and financial flows that take place between nations that are subject to sanctions, such as the one that is taking place between Russia and the west.

He began by stating that one of the powers that the west possessed was over settlement rights, which employed currencies that were generally in their favor. He mentioned this at the beginning. The statement went on to explain that financial institutions are aware of this as well as the fact that they are susceptible to it.

A Method That Avoids Being Affected By Sanctions

When Putin made this statement, he was alluding directly to the sanctions that the west had imposed on his country as a result of the war between Russia and Ukraine. Because of these restrictions, the organization had a far more difficult time gaining access to finance and financing from the worldwide market.

According to reports, Putin also brought up the fact that the system that governs international transactions at the present time is exceedingly costly and is controlled by a select group of highly influential centralized corporations.

In addition, he stated that it is feasible to design a system that, based on this area of distributed ledger and blockchain technology, would be advantageous to the majority of people regardless of the outcomes of the events that take place. He asserted that this method would make international financial transactions simpler and more comfortable for users, removing the requirement that they use banks and other third-party systems.

According to him, Russia is well recognized as a proponent for the widespread usage and incorporation of cryptocurrencies, and the country is actively working to make digital currency one of the most common forms of monetary exchange. In addition to this, he is firmly of the opinion that regulation of cryptocurrencies is essential in order to safeguard investors. He is currently concentrating his efforts on making the usage of cryptocurrencies in international transactions legitimate.

In September, the Russian financial authorities started the process of developing a trustworthy platform for the processing of foreign payments.

According to a source, conversations are now taking place between Russia and Cuba, two nations that have been sanctioned, over the feasibility of building a distributed ledger technology for use in international payments.