Vladimir Putin, the president of Russia, concurs that the world needs a new, non-Western digital currency or payment system. Additionally, according to President Putin, global financial institutions have to be built on open democratic ideals and take into account the realities of a multipolar world.
The “Artificial Intelligence Journey 2022” conference on AI and machine learning was attended by President Putin. His attendance at the occasion was mentioned by a Russian news agency. The discussion mostly focused on innovations for economic growth based on AI.
Additionally, the talk underlined the relevance of open democratic principles. Moreover, it is necessary for international financial institutions to take into account the reality of a multipolar world.
Settlements are one of the attack lines under the circumstances of the existing unlawful limitations, the president said. The existing international payment system is costly, and a select number of nations and financial institutions dominate its regulation and correspondent account structure, he continued.
Putin again underlined the necessity for a new, independent international dispute resolution mechanism in light of the restrictions and sanctions imposed on his country. The absence of banks and outside involvement in the new system was a promise made by the president.
The electronic money Putin said during his speech. He asserted that because of Russia’s fragile relations with the Western superpowers, international solutions are now in jeopardy.
Sberbank was mentioned by the President. Russian state-owned banking and financial services company Sberbank. Its main office is in Moscow. It was among the first to extensively exploit artificial intelligence.
Putin praised the bank’s efforts and noted that the AI-enabled solutions used by Sberbank improved the value and usability of the services offered to consumers, companies, and corporate clients.
Putin Accepts Digital Currency as the World’s Payment System was first published on Coin Edition.
Something more about Digital Currency
Any payment made only through electronic means is referred to as digital money, often known as digital currency. In contrast to coins or dollar bills, digital currency is not a tangible item. Accounting and transfer are done instead using internet platforms. One of the most widely used forms is the virtual money known as Bitcoin.
Digital money is another way to represent fiat money, such as dollars or euros. Digital currency is utilised for transactions using devices such as credit cards, mobile devices, and online cryptocurrency exchanges. It may occasionally be possible to convert it via an ATM into real money.
The transactional procedure is streamlined using digital money as opposed to actual money. For instance, compared to traditional money, the technical foundations of digital money can sped up and facilitate cross-border financial transactions.
This kind of money also simplifies the process through which central banks implement monetary policy. To conduct transactions, several forms of digital currency use encryption. tamper- and censorship-proof, rendering it difficult for governments or private entities to control them.
Since the Ukraine war began, there have been suggestions that Russia is contemplating cryptocurrency for international transfers. As a result, the EU increased its cryptocurrency sanctions. The Russian Central Bank has been wary about cryptocurrencies and keen to support regulated digital assets. The Russian Prime Minister gave a number of initiatives including the use of cryptocurrencies, a digital ruble, and tokenized real-world assets for settlement in September a deadline of December.
Putin’s complaints about the banking industry, if they are true, apply to both the Central Bank of Russia and the major state-controlled Sberbank.