Russian President Vladimir Putin delivers a speech in the course of the Russian Vitality Week occasion on October 13, 2021 in Moscow, Russia.
Mikhail Svetlov | Getty Photographs
Russian President Vladimir Putin thinks cryptocurrencies have worth — however he isn’t satisfied they’ll change the U.S. greenback in settling oil trades.
Some months in the past, Russia’s deputy prime minister, Alexander Novak, prompt the nation may transfer away from greenback-denominated crude contracts if the U.S. continues to impose focused financial sanctions.
Requested whether or not bitcoin or one other cryptocurrency could possibly be used as an alternative choice to the greenback in buying and selling oil — a key export for Russia — Putin stated it is “too early to speak concerning the commerce of power assets in crypto.”
“I imagine that it has worth,” he advised CNBC’s Hadley Gamble on the Russian Vitality Week occasion in Moscow Wednesday. “However I do not imagine it may be used within the oil commerce.”
“Cryptocurrency isn’t supported by something as of but,” Putin stated. “It might exist as a way of cost, however I feel it is too early to say concerning the oil commerce in cryptocurrency.”
The Russian chief additionally flagged cryptocurrencies’ large consumption of power as a possible barrier to their use. Bitcoin requires numerous computing energy to course of transactions and mint new tokens.
Nevertheless, Putin did not mince phrases on Russia’s try to maneuver away from reliance on the greenback for commerce.
“I imagine the U.S. makes an enormous mistake in utilizing the greenback as a sanction instrument,” he stated. “We’re compelled. We now have no different selection however to maneuver to transactions in different currencies.”
“On this regard, we are able to say the US bites the hand that feeds it,” Putin added. “This greenback is a aggressive benefit. It’s a common reserve forex, and the US in the present day makes use of it to pursue political objectives, they usually hurt their strategic and financial pursuits consequently.”
In June, Russia introduced it will drop U.S. greenback belongings from its sovereign wealth fund.