Russian President Vladimir Putin has indicated that the decentralization of the finance system can potentially benefit the worldwide economy, allowing it to be more resilient in the long run. At the Second Eurasian Economic Forum, Putin stated that building this decentralized system would allow for a depoliticized worldwide economic arena, contributing to withstand crises derived from major events.
Putin States a (DeFi) System Will Benefit the Worldwide Economy
Russian President Vladimir Putin has commented on the importance of building a decentralized financial system for the worldwide economy. As part of a speech during the Second Eurasian Economic Forum, Putin stated the plenty of advantages that a decentralized system would attract to the world economy. He stated:
Of course, the stability of all worldwide finances will largely depend on this decentralization. The more de-centralized it is the better for the worldwide economy. It will be less dependent on crisis developments in the countries that still have such an advantage as worldwide reserve currencies.
Such decentralization of the financial system would attract better preparation for events like an eventual default of the United States debt, or a dramatic increase of inflation in the country, which would affect other countries using the United States dollar as a reserve and for international settlements.
Additionally, Putin also mentioned that this decentralization will allow the depoliticization of the worldwide economic arena, allowing for easier developments in the area.
Part of this new decentralized worldwide financial system that is being created must do with the de-dollarization of payment channels around the globe, and the switch to national currencies.
In this topic, the Russian Federation has been completing efforts to lower the share of the United States dollar used for its international settlements, shifting to the use of the Chinese yuan and other national currencies with China and Iran, owing to the unilateral sanctions that the United States Government enacted against it, freezing billions of dollars in the process.
Nonetheless, Putin pointed out that other countries are likewise moving in this direction, stating:
Numerous other fast-developing economies in the world are likewise shifting to the use of national currencies in foreign trade settlements, including China, India, Latin American countries.
The possible issuance of a common currency for the BRICS bloc of countries, revealed to be in discussion by Putin during the BRICS business forum a year ago, would likewise serve in this direction, allowing for the future development of alternative payment methods outside of the United States dollar and established traditional payment channel controls.