Too early to talk about using crypto for oil trading, says Putin


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Russian President Vladimir Putin believes that it is “nonetheless untimely” to make use of cryptocurrencies for settling trades of power assets like oil.

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

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

“Cryptocurrency oil contracts? It’s too early to speak about it. It really works for transferring funds from one place to a different, however by way of buying and selling, particularly on the subject of power assets, it’s nonetheless untimely for my part,” the president said.

Putin went on to say that “every little thing evolves” and “has the proper to exist,” including that the Russian authorities is intently monitoring the cryptocurrency market. He additionally didn’t exclude the likelihood that in some unspecified time in the future cryptocurrencies will grow to be a “technique of accumulation.” “We see how his market fluctuates. It is a bit early at present,” Putin added.

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

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

Throughout the interview, the Russian president additionally claimed that the US greenback “undermines its place” as a global reserve asset. “We aren’t focused on chopping off greenback funds fully, and we’re thus far glad with funds for power assets in {dollars}, primarily for oil,” he added.

The information comes as Russian authorities think about a brand new regulation to limit cryptocurrency investments by non-accredited investors. Beforehand, the Russian central financial institution was reportedly planning to slow down transactions to crypto exchanges in an effort to defend retail buyers from “emotional” purchases of crypto.