Russian President Vladimir Putin says cryptocurrencies ‘have value’, ‘have the right to exist’

According to CNBC, Russian President Vladimir Putin believes that cryptocurrencies have value and exist as a payment channel, although he does not think they can replace the dollar.

Russian President Vladimir Putin

In an interview published on CNBC, the Russian leader said that cryptocurrencies “have a right to exist” but also warned that it is too early to talk about using cryptocurrencies to trade oil or other exports of Russia. Russia.

President Putin’s warning came when a few months ago, Deputy Prime Minister Alexander Novak commented that Russia may not rely on the dollar to trade oil anymore if the US continues the current sanctions.

When asked if Bitcoin or any other digital currency will be used to replace the dollar for oil transactions – Russia’s main source of revenue, President Putin continued to reiterate that it is too early to talk about selling oil with digital currency. .

“I believe they (cryptocurrency) have their own value. But I think they could have been used to trade oil… Cryptocurrencies aren’t backed by anything yet and even though it might exist. as a payment channel, but I think it’s too early to talk about trading oil with cryptocurrency,” Putin said.

Besides, President Putin also talked about the power consumption limit of cryptocurrencies as a barrier for this payment method. CNBC reported that Bitcoin or other cryptocurrencies often consume a lot of electricity for making transactions as well as mining.

In an interview with CNBC, President Putin said Russia was forced to look for alternatives other than the dollar in transactions by the current sanctions.

“I believe the US is making a big mistake in using the dollar as an embargo. We are pressed and have no choice but to find an alternative currency for trade… that the US is doing its own damage, its dollar has the advantage of being stored around the world as a haven asset and the US is using it for political purposes. harm its economic interests,” Putin said.

Earlier in June 2021, Russia announced that it would reduce its dollar assets through state investment funds.

According to Bloomberg news, the Bank of Russia (BoR) has warned investors that cryptocurrencies are very volatile and they are not allowed to be traded in the country. However, Russia has no official ban on cryptocurrencies like China has.