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

3 days ago

Illuminated mining rigs run wrong racks astatine the CryptoUniverse cryptocurrency mining workplace successful Nadvoitsy, Russia.

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Russian President Vladimir Putin thinks cryptocurrencies person worth — but he's not convinced they tin regenerate the U.S. dollar successful settling lipid trades.

Some months ago, Russia's lawman premier minister, Alexander Novak, suggested the state could determination distant from greenback-denominated crude contracts if the U.S. continues to enforce targeted economical sanctions.

Asked whether bitcoin oregon different cryptocurrency could beryllium utilized arsenic an alternate to the dollar, Putin said it's "too aboriginal to speech astir the commercialized of vigor resources successful crypto."

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"I judge that it has value," helium told CNBC's Hadley Gamble astatine the Russia Energy Week lawsuit successful Moscow Wednesday. "But I don't judge it tin beryllium utilized successful the lipid trade."

"Cryptocurrency is not supported by thing arsenic of yet," Putin said. "It whitethorn beryllium arsenic a means of payment, but I deliberation it's excessively aboriginal to accidental astir the lipid commercialized successful cryptocurrency."

The Russian person besides flagged cryptocurrencies' monolithic depletion of vigor arsenic a imaginable obstruction to their use. Bitcoin requires tons of computing powerfulness to process transactions and mint caller tokens.