Russian President Vladimir Putin believes cryptocurrencies have value – but he is not convinced that they can replace the US dollar in oil transactions.
Notably, according to CNBC a few months ago, Russia’s deputy prime minister, Alexander Novak, suggested that the country could move away from dollar-denominated crude oil contracts if the US continues to impose targeted economic sanctions.
Asked if bitcoin or another cryptocurrency could be used as an alternative to the dollar, Putin said it is “too early to talk about trading energy resources in cryptocurrencies.”
“I think it has value,” he said at the Russia Energy Week event in Moscow on Wednesday. “But I don’t think it can be used in the oil trade.”
-Vladimir Putin
Cryptocurrencies are a means of payment, but they do not make for oil trade
“The cryptocurrency is not supported by anything yet,” Putin said. “It may exist as a means of payment, but I think it’s too early to talk about trading oil in cryptocurrencies.”
The Russian leader also pointed to the massive energy consumption of cryptocurrencies as a potential obstacle to their use. Bitcoin requires a lot of computing power to process transactions and create new tokens.
However, Putin did not comment on Russia’s attempt to get rid of the dollar.
“I believe the U.S. is making a huge mistake in using the dollar as a sanctioning instrument,” he said.
“So, we’re forced. We have no choice but to trade with other currencies.”
