Putin Offers Africa Crypto Payments as an Alternative to the US Dollar

Africa crypto payments could gain another potential route following a proposal by Russian President Vladimir Putin to expand digital currency settlements between Russia and African countries.

Speaking at the third Russia-Africa Economic and Humanitarian Forum in Moscow on October 28, Putin said African countries could join a high-tech cross-border payment system that uses digital currencies to process international transactions.

He argued that the system could support faster payments and give participating countries greater control over their financial transactions.

“Why can’t the African continent connect to this high-tech system?” Putin asked, according to Russian media reports.

He added that the proposed system would operate independently of Western financial infrastructure and would be difficult for outside governments to block.

Africa Crypto Payments: What Putin Is Proposing

Putin’s proposal forms part of Russia’s broader effort to build alternative channels for international payments following Western sanctions and restrictions on Russian financial institutions.

The Russian president said countries should expand settlements in their national currencies and strengthen banking relationships. He also called for alternative payment messaging systems, including the Bank of Russia’s Financial Messaging System and Africa’s Pan-African Payment and Settlement System (PAPSS).

These arrangements could allow businesses to settle transactions without relying entirely on traditional dollar-based banking channels.

Russian officials also highlighted the potential role of digital currencies in converting payments between different national currencies.

However, Putin did not announce a specific cryptocurrency that African countries would be required to use. His comments focused on digital currencies and alternative payment infrastructure more broadly.

Russia Highlights A7 Cross-Border Payment Platform

Russian officials also presented A7 as an example of a payment platform targeting cross-border transactions with African countries.

Deputy Prime Minister and Finance Minister Anton Siluanov said the platform could process payments quickly, with transaction fees of around 0.3%.

The claim suggests that Russia wants to position alternative payment networks as cheaper options for businesses involved in international trade.

However, A7 has attracted scrutiny over its ownership and links to Russia’s sanctions environment.

The Financial Times reported in April that A7 was established by Russia’s state-linked Promsvyazbank and Moldovan businessman Ilan Șor. The platform uses stablecoins, promissory notes and other payment methods to facilitate cross-border transactions.

A7 has also announced plans to expand into African markets, including Nigeria and Zimbabwe. Nevertheless, its actual presence and level of adoption across the continent remain unclear.

What the Proposal Could Mean for African Businesses

For African businesses, wider access to Africa crypto payments could create additional options for international trade and cross-border transactions.

Companies involved in trade with Russia could benefit from direct settlement channels, particularly where traditional banking routes are expensive or difficult to access.

Digital currency payments may also support faster cross-border transactions by reducing the number of intermediaries involved in processing transfers.

However, wider adoption would depend on cooperation between African governments, central banks, financial institutions and payment providers.

Countries would also need to address regulatory concerns, currency conversion, consumer protection and the risks associated with digital assets.

For instance, the use of stablecoins can make international transfers more convenient, but it also raises questions about financial oversight and the potential movement of funds outside regulated banking channels.

Africa’s Existing Push for Alternative Payment Systems

Putin’s proposal comes as African countries continue developing their own cross-border payment infrastructure.

The Pan-African Payment and Settlement System, developed by Afreximbank and the African Union, enables payments between participating African countries in their local currencies.

The system aims to reduce reliance on third-party currencies and lower the cost of intra-African trade.

Meanwhile, interest in digital assets continues to grow across the continent. In Nigeria, for example, stablecoins have become increasingly relevant for cross-border transfers, with users attracted by their speed and potential cost advantages.

These developments show that Africa’s interest in alternative payment channels is not entirely new. However, Russia’s proposal introduces another potential partner and payment route into the conversation.

You may also like : Binance Reports $6.3 Billion Security Breach in Largest Crypto Heist

Russia Seeks Stronger Financial Ties With Africa

Putin’s comments also reflect Moscow’s wider effort to deepen economic ties with African countries.

At the summit, he called for stronger banking relationships, more trade in national currencies and increased cooperation across several sectors.

Russia is also seeking to expand trade with African countries, with Putin calling for bilateral trade to double and eventually exceed $50 billion.

Although the proposed digital currency payment system could create new opportunities, its success will depend on whether African financial institutions and governments choose to participate.

For now, the proposal signals Russia’s interest in offering alternatives to dollar-based international payments. It does not mean that African countries are preparing to replace the US dollar or adopt a common cryptocurrency.