Russia’s Putin says crypto has “value” – but perhaps not for oil trade

Russian President Vladimir Putin will give a speech during the Russian Energy Week event on October 13, 2021 in Moscow, Russia.

Mikhail Svetlov | Getty Images

President of Russia Vladimir Putin believes that cryptocurrencies have value – but he is not convinced that they can replace the US dollar in the settlement of oil trade.

A few months ago, Russia’s Deputy Prime Minister Alexander Novak proposed the country can move away from greenback-denominated commodity contracts if the United States continues to impose targeted economic sanctions.

Asked if bitcoin or another cryptocurrency could be used as an alternative to the dollar, Putin said it was “too early to talk about trading energy resources in crypto.”

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“I think it’s worth it,” he told CNBC’s Hadley Gamble at the Russian Energy Week event in Moscow on Wednesday. “But I do not think it can be used in the oil trade.”

“Cryptocurrency is not supported by anything yet,” Putin said. “It may exist as a means of payment, but I think it is too early to say about the oil trade in cryptocurrency.”

The Russian leader also flagged the massive energy consumption of cryptocurrencies as a potential obstacle to their use. Bitcoin requires a lot of computing power to process transactions and coin new tokens.

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