Vladimir Putin believes it is “still premature” to use cryptocurrencies in regulating the trade in energy resources such as oil.
On Thursday, the Russian president discussed the potential applications of cryptocurrencies in an interview for CNBC following a session of the Russian Energy Week forum.
According to the transcript of the interview published on the official Kremlin website, Putin said that private cryptocurrencies “can act as a unit of account,” but are “very unstable.”
“Cryptocurrency Oil Contracts? It is still too early to talk about it. They work to transfer funds from one place to another, but in terms of trade, especially energy resources, I think they are still premature, ”said the president.
Putin went on to explain that “everything evolves” and “has a right to exist,” adding that the Russian government is closely monitoring the cryptocurrency market. It also did not rule out the possibility that at some point cryptocurrencies will become a “medium of accumulation.” “Let’s see how this market fluctuates. Today is still too early, ”Putin commented.
The president made it clear that cryptocurrencies “are not yet backed by anything.” Asked if he considers Tesla CEO Elon Musk’s crypto investment to be “worthless,” Putin said no, explaining that he only questioned crypto as a unit of account in the context of energy trading.
Related: Russian Deputy Finance Minister: We Don’t Plan to Ban Cryptocurrencies Completely
During the interview, the Russian president also said that the US dollar “jeopardizes its position” as an international reserve asset. “We are not interested in eliminating dollar payments entirely, and so far we are satisfied with dollar payments for energy resources, mainly oil,” he added.
The news emerges as Russian authorities consider a new law to limit cryptocurrency investments by non-accredited investors. Previously, it appears that the Russian central bank itself planning to slow down transactions to cryptocurrency exchanges to protect retail investors from “emotional” crypto purchases.
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