Once again, Russia is thinking of leveraging blockchain technology to offset western monopoly on the financial system.

During his talk at the international AI Journey Conference in Moscow, an annual conference organized by Sberbank, Russia’s largest bank, Russian President Vladimir Putin suggested a global payment system based on blockchain technology.

Citing western sanctions over the country in light of his invasion of Ukraine, or in his words, “illegitimate restrictions”, he noted that the centralized financial system continues to endanger the ability of the Russian Federation to make international payments. He also added that the system was expensive, and a small group of people are controlling its regulation in line with their needs and priorities.

A decentralized settlement system, on the contrary, is not only safe for its users, but also far more practical and completely independent from banks and outside influence.

“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,” the Russian President stated.

He continued: “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.” 

This move is the latest in Russia’s plans to incorporate blockchain technology into its everyday legislations. Earlier in August, the Central Bank of the Russian Federation released a draft proposal outlining the primary monetary policy for the next three years, which included plans to release a digital ruble by 2024, ahead of its March elections that year.

In September, a senior Russian lawmaker disclosed that Russia was even planning to use its planned digital ruble in mutual settlements with China early next year.

Earlier this week, Russian lawmakers also revealed they were working on a proposed amendment discussing the establishment of a national crypto exchange in Russia.