Russia is calling for a new digital currency or ledger bases transaction system. Wanting to reduce reliance on big banks and third parties. As well as reduce costs.
Putin wants, but will Putin get?
It is not really any surprise that the heavy sanctions imposed on Russia have severely limited its ability to interact with the western financial sector. But other than that the sanctions have been affecting the people of Russia rather than the oligarchs and their ilk. Mostly affecting them in ways of limiting their vacation options.
But Putin wanting Russia to back into the western financial system is probably something that is very high on his Christmas wish list. But I have a nagging feeling that people on the naughty list seldom get what they wish for.
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, -Putin
This is why I think Putin seems to have been backpedaling on Russia's crypto ban recently. As well as looking to create a new reserve currency together with China and Saudi Arabia. Both things could alleviate much of the pressure put on Russian finances with the sanctions. And creating a new international banking system seems to be yet another try to mitigate and help alleviate some of the pressure.
Today, the system of international payments is expensive, with correspondent accounts and regulation controlled by a small club of states and financial groups. -Putin
While the timing of Putin's realization leaves more to be desired. The problem he talks about is one of the very basic principles that crypto was designed to address. With it enabling peer-to-peer transactions. Too bad my belief in Putin and the odds of him not having personal or nefarious reasons, as motivation for why he suddenly seemed to have had a "come to Christ" moment is at about -10000%. Or about the same as a snowball's chance in hell.
But I do agree with him that a blockchain-based system for international transactions would be a very good solution. I do not want any power-hungry despot anywhere near such a system. In fact, I do not want any government near such a stem. Despot or not.
What are your thoughts on this, have Putin finally seen the light? Or is he just trying to wriggle his way out of an uncomfortable Christmas sweeter he was forced to wear against his will? Please sound off in the comments down below. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.
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Picture provided by: Fair use