Although Russian President Vladimir Putin believes cryptocurrencies have value, he does not believe they can completely replace the U.S. dollar as a medium of exchange for settling oil contracts. Putin
A few months ago, Russia’s deputy prime minister, Alexander Novak, said that if the United States continued to implement targeted economic penalties, the government may move away from crude contracts priced in greenbacks.
Russia’s main export is oil. When asked if bitcoin or another cryptocurrency might use to trade it, Putin responded it was “too early to talk about the exchange of energy resources in crypto.”
At the Russian Energy Week conference in Moscow on Wednesday, he told CNBC’s Hadley Gamble, “I feel it has worth”. In the oil trade, though, “I doubt it can be exploited.”
Russian President Vladimir Putin delivers a speech
According to Putin, “Cryptocurrency does not support by anything yet”. The oil trade in cryptocurrency might be possible, but it’s yet too early to say for sure.
The Russian president also pointed to the large amount of energy that cryptocurrencies consume. As a potential roadblock to widespread adoption. An enormous amount of computer power requires to execute transactions and create new tokens in the Bitcoin ecosystem.
On the other hand, Putin was unapologetic about Russia’s efforts to reduce its reliance on the dollar in international trade.
I think it’s a terrible mistake for the United States to use the dollar as a punitive weapon,” he declared. “We’ve been dragged along by the nose. As a result, we force to conduct business in several currencies.
The United States is “biting the hand that feeds it,” Putin continued. “This dollar gives us a leg up in the race. The United States currently utilizes it to accomplish political objectives, which harms its strategic and economic interests.”
Russia said in June that it would remove all of its sovereign wealth fund’s holdings denominated in U.S. dollars.