Vladimir Putin, the current President of Russia, believes that an improved digital payment system is needed for international transactions. It is clear that international transactions using digital money and distributed ledger technology will become easier in the future. Putin has come a long way since banning digital assets for payments in Russia just four months ago. In Russia, the use of digital securities and valuable tokens as payment for goods, services and products is against the law signed by the president at the time. This provision was introduced in the Digital Asset Legislation created in 2020 and declared that it is illegal to use cryptocurrency as a payment method.
However, now, the famous president has revealed that international payments and financial transactions between Russia and other countries are at risk. The main reason for this is the growing hostility between Western countries and Russia.
Putin said this at a conference focused on human intelligence organized by Sberbank, the country’s largest financial institution. Over the past few months, Russia has been considering a comprehensive crypto legal framework, and support is growing for the regulation of crypto payments across international borders.
- Vladimir Putin: “We all know very well that under today’s illegitimate restrictions, one of the lines of attack is through settlements. And our financial institutions know this better than anyone because they are exposed to these practices.”
Vladimir Putin of Russia and cryptocurrencies
In February, the Russian Ministry of Finance issued a bill to the country’s parliament that would regulate cryptocurrencies and give them a legal framework.
This is very different from the position of the Bank of Russia, which is in favor of banning the use of cryptocurrencies. This year, the country is under investigation for allegedly using cryptocurrency as a way to avoid sanctions imposed in response to the attack on Ukraine.
On November 3, lawmakers across the country said they were working on legislation to create a national crypto exchange. These representatives are currently working on the amendment. It is said that the Ministry of Finance and the Central Bank of Russia agreed to support the plan. The State Duma, which is the lower house of the Federal Assembly of Russia, has begun the process of developing a draft amendment that will establish a national cryptocurrency exchange in the country.
In mid-November, MEPs met with various market players to discuss the changes to the law called “On Digital Financial Assets” that are expected to come into force. A member of the Economic Policy Committee of the State Duma named Sergey Altuhov pointed out the fiscal support for such measures, arguing that there is no point in denying the existence of cryptocurrencies; Instead, the problem is that they are distributed in large quantities that are not controlled by the state.
It is important to note that officials from the Ministry of Finance and the Central Bank, two organizations that regulate the industry, were not present at the conference. It is expected that the document will be drafted keeping in mind the current market situation in advance. Then the document will be submitted to the government and the Bank of Russia for discussion.