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

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Russian President Vladimir Putin believes it is “still premature” to use cryptocurrencies to regulate trade in energy resources such as oil.

The Russian president discussed potential use cases for cryptocurrencies in an interview with UKTN on Thursday following a plenary session at the Russian Energy Week forum.

According to a full interview text posted on the Kremlin’s official website, Putin said private cryptocurrencies “can act as a unit of account”, but they are “very unstable.”

“Cryptocurrency Oil Contracts? It is too early to talk about it. It works to transfer funds from one place to another, but in terms of exchange, especially when it comes to energy resources, it is still premature in my opinion, ”said the president.

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Putin went on to say that “everything evolves” and “has a right to exist,” adding that the Russian government is closely monitoring the cryptocurrency market. Nor does it rule out the possibility that at some point cryptocurrencies will become a “means of accumulation”. “We see how this market fluctuates. It’s a bit early today, ”added Putin.

The president said cryptocurrencies “are not backed by anything yet.” When asked if he considers the crypto holdings of Tesla CEO Elon Musk to be ‘worthless’, Putin replied no, explaining that he is only questioning crypto as a unit. account in the context of energy trading.

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During the meeting, the Russian president also said that the US dollar “undermines its position” as an international reserve asset. “We are not interested in cutting dollar payments entirely, and so far we are satisfied with payments for energy resources in dollars, mainly for oil,” he added.

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The news comes as Russian authorities consider a new law to limit cryptocurrency investments by unaccredited investors. Previously, the Russian central bank reportedly planned to slow down transactions to crypto exchanges in order to protect retail investors from “emotional” crypto purchases.