Russia’s Putin says crypto has ‘value’ — but maybe not for trading oil

Russian President Vladimir Putin thinks cryptocurrencies have worth — but he's not satisfied they’ll exchange the U.S. greenback in settling oil trades.

Some months in the past, Russia's deputy prime minister, Alexander Novak, instructed the nation may transfer away from greenback-denominated crude contracts if the U.S. continues to impose focused financial sanctions.

Asked whether or not bitcoin or one other cryptocurrency might be used as a substitute for the greenback, Putin mentioned it's "too early to talk about the trade of energy resources in crypto."

"I believe that it has value," he informed CNBC's Hadley Gamble on the Russian Energy Week occasion in Moscow Wednesday. "But I don't believe it can be used in the oil trade."

"Cryptocurrency is not supported by anything as of yet," Putin mentioned. "It may exist as a means of payment, but I think it's too early to say about the oil trade in cryptocurrency."

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The Russian chief additionally flagged cryptocurrencies' large consumption of vitality as a possible barrier to their use. Bitcoin requires plenty of computing energy to course of transactions and mint new tokens.

However, Putin didn't mince phrases on Russia's try to maneuver away from reliance on the greenback.

"I believe the U.S. makes a huge mistake in using the dollar as a sanction instrument," he mentioned. "We are forced. We have no other choice but to move to transactions in other currencies."

"In this regard, we can say the United States bites the hand that feeds it," Putin added. "This dollar is a competitive advantage. It is a universal reserve currency, and the United States today uses it to pursue political goals, and they harm their strategic and economic interests as a result."

In June, Russia introduced it might drop U.S. greenback property from its sovereign wealth fund.

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