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 Photos
Russian President Vladimir Putin thinks cryptocurrencies have worth — however he is not satisfied they will change the U.S. greenback in settling oil trades.
Some months in the past, Russia’s deputy prime minister, Alexander Novak, prompt the nation might 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 may very well be used as an alternative choice to the greenback, Putin stated it is “too early to speak concerning the commerce of vitality assets in crypto.”
“I imagine that it has worth,” he informed 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 is just not supported by something as of but,” Putin stated. “It might exist as a method of cost, however I feel it is too early to say concerning the oil commerce in cryptocurrency.”
The Russian chief additionally flagged cryptocurrencies’ huge consumption of vitality as a possible barrier to their use. Bitcoin requires numerous computing energy to course of transactions and mint new tokens.
Nonetheless, Putin did not mince phrases on Russia’s try to maneuver away from reliance on the greenback.
“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 alternative however to maneuver to transactions in different currencies.”
“On this regard, we are able to say america bites the hand that feeds it,” Putin added. “This greenback is a aggressive benefit. It’s a common reserve foreign money, and america at present makes use of it to pursue political targets, they usually hurt their strategic and financial pursuits consequently.”
In June, Russia introduced it might drop U.S. greenback belongings from its sovereign wealth fund.