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Too early to talk about using crypto for oil buying and selling, says Putin

Russian President Vladimir Putin believes that it is “still premature” to use cryptocurrencies for settling trades of vitality assets like oil.

The Russian president mentioned potential use circumstances of cryptocurrencies in a Thursday CNBC interview following a plenary session of the ​​Russian Energy Week discussion board.

According to a full interview textual content revealed on the Kremlin’s official web site, Putin stated that non-public cryptocurrencies “can act as a unit of account” however they’re “very unstable.”

“Cryptocurrency oil contracts? It’s too early to talk about it. It works for transferring funds from one place to another, but in terms of trading, especially when it comes to energy resources, it is still premature in my opinion,” the president said.

Putin went on to say that “everything evolves” and “has the right to exist,” including that the Russian authorities is carefully monitoring the cryptocurrency market. He additionally didn’t exclude the likelihood that sooner or later cryptocurrencies will develop into a “means of accumulation.” “We see how his market fluctuates. It’s a bit early today,” Putin added.

The president stated that cryptocurrencies are “not backed by anything yet.” When requested whether or not he considers the crypto holdings by Tesla CEO Elon Musk to be “worthless,” Putin stated no, explaining that he solely questioned crypto as a unit of account within the context of vitality buying and selling.

Related: Russia doesn’t plan to comply with in China’s footsteps by banning crypto outright, says deputy finance minister

During the interview, the Russian president additionally claimed that the United States greenback “undermines its position” as a global reserve asset. “We aren’t interested in cutting off dollar payments completely, and we are so far satisfied with payments for energy resources in dollars, primarily for oil,” he added.

The information comes as Russian authorities contemplate a brand new regulation to restrict cryptocurrency investments by non-accredited traders. Previously, the Russian central financial institution was reportedly planning to decelerate transactions to crypto exchanges so as to shield retail traders from “emotional” purchases of crypto.