In Brief:
- Russian President Vladimir Putin thinks cryptocurrencies have value
- However, they can’t be used to settle oil trades yet.
- Huge amount of energy consumed by bitcoin mining is another potential barrier for its use
Russian President Vladimir Putin thinks crypto holds value, but he’s not convinced that they can replace the US dollar in the settlement of oil transactions.
“I believe that it has value,” President Putin told CNBC at the Russian Energy week event in Moscow on Wednesday. “But I don’t think it can be used in the oil trade.”
When asked if bitcoin or other cryptocurrencies could be used in place of the US dollar in trading oil, Putin said that it is “too early to talk about trading energy resources in cryptocurrencies.”
The Russian leader additionally flagged cryptocurrencies’ great consumption of energy as a possible barrier for its use. Bitcoin needs a lot of computing power to process transactions and mint new tokens.
Moreover, Putin didn’t mince words on Russia’s attempt to get away from dependence on the dollar for trade.
“I believe the US makes a huge mistake in using the dollar as a sanction instrument,” he said. “We are forced. We have no other choice but to move to transactions in other currencies.”
Also Read: Russia Plans to Safeguard Crypto Investors with New Regulation
“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.”
