NEW DELHI (CoinChapter.com) — Russian President Vladimir Payment emphasized the need for an independent settlement system utilizing digital currencies and blockchain technology.
“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,”
said Vladimir Putin to a congression of scientists, engineers, and entrepreneurs seated at the Artificial Intelligence Journey Conference in Moscow.
“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.”
Russia’s love-hate affair with crypto
Once deemed illegal in the country, cryptocurrencies in Russia have come full circle.
In January 2022, a consortium of Russian banks proposed a ban on crypto activities and mining to protect. So, the consortium aimed to protect its monetary system’s sovereignty which the decentralized technologies strive to challenge.
In July 2022, Putin signed a bill banning digital security and utility token payments across the nation.
However, Russia’s war on Ukraine forced Western countries to apply several countermeasures. The United Kingdom, the United States, and Canada limited Russia’s access to money by freezing Russian assets, placing limits on deposits, and limiting borrowing.
As the war in Ukraine raged on, and additional sanctions followed, Russian banks gradually began warming up to crypto. Advantages such as a low-cost avenue for international and national payments and a currency that was not ‘controlled’ by a central authority started to look lucrative.
“The topic of digital financial assets, the digital rouble, and cryptocurrencies are currently intensifying in society, as Western countries are imposing sanctions and creating problems for bank transfers, including in international settlements,”
Anatoly Aksakov, head of the Russian Duma’s financial committee, told Reuters.
In September 2022, Russian banks backtracked on their earlier efforts and proposed legalizing the use of crypto for international payments. Two months later, Members of the Duma proposed the creation of Russia’s first national crypto exchange.
Not an ideal moment
However, it’s worth noting that Russia’s renewed interest in crypto comes during a tumultuous time.
The likes of Bitcoin and Ethereum have crashed in the wake of the FTX crypto exchange’s collapse. In turn, the market’s downturn has stressed several famed crypto companies, including hedge funds, and lending businesses.
In an interview with CNBN, Mizuho analyst Dan Dolev said “crypto is dead” in the wake of the FTX fiasco.
