Crypto has ‘Value’ - Putin

Vladimir Putin, the President of Russia, believes cryptocurrencies have value but are not yet ready to be part of energy trading.

Saying it was too early for crypto to replace the US dollar in oil trades, Putin also pointed to the energy consumption of cryptocurrencies as a possible obstacle to widespread use.

His comments come just months after Alexander Novak, Russia’s deputy prime minister, suggested the country could abandon the use of US dollars for oil contracts in response to ongoing economic sanctions.

'Crypto Has Value'

Putin was speaking at the Russian Energy Week event in Moscow on Wednesday when he said it’s ‘too early to talk about the trade of energy resources in crypto’.

In conversation with CNBC’s Hadley Gamble, Putin added: ‘I believe that it has value, but I don’t believe it can be used in the oil trade.

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

While Putin believes it may be too early for crypto to trade Russia’s key export, oil, he was outspoken about reliance on the dollar.

Putin told CNBC: ‘I believe the US makes a huge mistake in using the dollar as a sanction instrument. 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. 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.’