Russia's Putin says crypto has 'value' — but maybe not for trading oil

  • Russia has hinted it could move away from dollar-denominated oil if the U.S. continues to impose targeted sanctions.
  • Asked whether crypto could be used as an alternative to the greenback, President Vladimir Putin said it was "too early to say."
  • "I believe that it has value," he told CNBC Wednesday. "But I don't believe it can be used in the oil trade."

In this article

  • BTC.CM=
  • ETH.CM=

Russian President Vladimir Putin thinks cryptocurrencies have value — but he's not convinced they can replace the U.S. dollar in settling oil trades.

Some months ago, Russia's deputy prime minister, Alexander Novak, suggested the country could move away from greenback-denominated crude contracts if the U.S. continues to impose targeted economic sanctions.

Asked whether bitcoin or another cryptocurrency could be used as an alternative to the dollar, Putin said it's "too early to talk about the trade of energy resources in crypto."

Read more about cryptocurrencies from CNBC Pro

Bitcoin could hit $100,000 in the next couple years, Fidelity Investments says

Billionaire Barry Sternlicht explains why he owns bitcoin and ether

Missed out on bitcoin? Bank of America picks 12 stocks to ride the next crypto wave

"I believe that it has value," he told CNBC's Hadley Gamble at the Russian Energy Week event in Moscow Wednesday. "But I don't believe it can be used in the oil trade."

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

The Russian leader also flagged cryptocurrencies' massive consumption of energy as a potential barrier to their use. Bitcoin requires lots of computing power to process transactions and mint new tokens.

Source: Read Full Article