Russian President Vladimir Putin speaks at the Russia Energy Week event in Moscow, Russia, October 13, 2021.
Mikhail Svetlov | Getty Images
Russian President Vladimir Putin believes that cryptocurrencies have value-but he does not believe that they can replace the U.S. dollar to settle oil transactions.
A few months ago, Russian Deputy Prime Minister Alexander Novak said that if the United States continues to impose targeted economic sanctions, the country may abandon its dollar-denominated crude oil contracts.
When asked if Bitcoin or other cryptocurrencies can be used to replace the U.S. dollar, Putin said, “It’s too early to talk about crypto energy trading.”
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“I believe it has value,” he told CNBC’s Hadley Gamble at the Russia Energy Week event in Moscow on Wednesday. “But I don’t believe it can be used in the oil trade.”
“So far, nothing supports cryptocurrency,” Putin said. “It may exist as a means of payment, but I think it is too early to talk about the oil trade of cryptocurrencies.”
The Russian leader also pointed out that the massive energy consumption of cryptocurrency is a potential obstacle to its use. Bitcoin requires a lot of computing power to process transactions and mint new tokens.