Russia’s president says cryptocurrency has value and can exist

TL;DR Breakdown:

  • President Putin said crypto has value and can be used as a unit of account.
  • However, it is still early for the nation to use crypto for oil and energy settlement.

The president of the Russian Federation admitted in an interview with CNBC’s Headley Gamble, that digital currencies have value and can be used to transfer value across the country. However, it’s too early to adopt them on a national level for trading oil or energy resources. 

President Putin says crypto has value

Russia is considering winding down on dollar-backed oil contracts due to the US sanction on the country, as the deputy prime minister, Alexander Novak, previously revealed. He suggested that the country will launch contracts for oil supply in other currencies and possibly cryptocurrencies.

Speaking on this, president Putin began by telling Headley that cryptocurrency has value. However, he doesn’t think it can be used for trading oil, energy resources, or other primary materials. It is “too early to talk about the trade of energy resources in crypto,” he said, adding that cryptocurrencies are still volatile. 

Putin, in his statement, didn’t rule out the possibility of Russia settling oil trades with cryptocurrency in the future. He recognized that digital currencies have value and can be a unit of account. However, his concern about crypto is that they are not ”supported by anything as of yet,” and uses lots of energy for mining. 

But everything develops, everything has the right to exist. We will see how it will go further, maybe someday it may also be a means of accumulation.

president Putin added

Russia: No ban on Bitcoin

The president’s words are coming some days after the deputy finance minister, Alexey Moiseev, said they don’t have any plan to ban the use and trading of Bitcoin and other digital currencies in the country. Moiseev noted that the resident is free to own and trade on foreign exchanges. 

There is also no plan to legalize Bitcoin as Russia’s national currency, Dmitri Peskov, a spokesman for Moscow Kremlin in the event of Bitcoin legalization in El Salvador.  

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