"AK-47" manufacturer is considering accepting digital currencies: We urgently need a settlement system outside the banking system

Although still not widespread, cryptocurrency payments have seen a significant increase in adoption this year. While the general public may not be familiar with the weapons manufacturer Kalashnikov, the AK-47 rifle it produces is certainly well-known. The company is now considering digital currencies, but currently, central bank digital currencies (CBDCs) in various countries have not been fully developed, leaving only cryptocurrencies as a viable option.

Breaking Away from Traditional Banks

Local media agency TASS in Russia reported that Alan Lushnikov, the owner of the renowned weapon manufacturer Kalashnikov, revealed his plans to settle transactions using digital currencies in the future.

Alan Lushnikov, who previously served as the Deputy Minister of Transport in Russia from 2017 to 2018, acquired 75% of the company last year, with the state-owned military enterprise Rostec retaining the remaining 25%.

During the St. Petersburg International Economic Forum (SPIEF) on 6/3, Lushnikov stated:

The system we are looking forward to is moving towards non-bank settlement systems that are not tied to SWIFT and are not controlled by bankers. The world has been discussing digital currencies, and this is exactly what we urgently need.

SWIFT, established in 1973 as the Society for Worldwide Interbank Financial Telecommunication, is a communication tool provided by banks to exchange transaction information between banks and execute cross-border transfers amounting to billions of dollars daily.

Russian Central Bank Views CBDC as the Future

Recently, the Governor of the Russian Central Bank, Elvira Nabiullina, stated that she will continue to promote Central Bank Digital Currencies (CBDC) and believes that CBDCs will effectively meet Russia's growing demand for efficient and low-cost payment systems, becoming the future of the financial system.

Furthermore, the Russian Central Bank announced in early April that it will test a digital ruble in 2022, involving commercial banks and institutions in a pilot program. While China's progress with DCEP is significant, most countries are still in the discussion stages but cannot ignore the issue of currency digitalization.

The European Central Bank (ECB) released a report in June explaining CBDCs, with the conclusion even stating, "If central banks do not provide digital currencies, there may be stability risks." Federal Reserve Board Governor Lael Brainard also pointed out during a consensus conference that an official document on central bank digital currencies will be released this summer.