Russia’s Putin says crypto has ‘value’ – but probably not for oil

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

Mikhail Svetlov | Getty Pictures

Russian President Vladimir Putin thinks the dollar is worth it – but he is not convinced that they can replace the US dollar in regulating oil trade.

Several months ago, Russia’s deputy prime minister, Alexander Novak, said the country could move away from green economic agreements if the US continued to impose targeted economic sanctions.

Asked if bitcoin or any other cryptocurrency could be used as an alternative to the dollar, Putin said “it is very much a matter of trading the strengths found in crypto.”

“I believe it has value,” he told HadBC GND of CNBC at a Russian Energy Week event in Moscow Wednesday. “But I don’t believe it can be used in oil sales.”

“Cryptocurrency is not backed by anything right now,” Putin said. “It may be available as a payment method, but I think it’s dawned on us to talk about oil trading in cryptocurrency.”

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The Russian president also cited the widespread use of digital power as a hindrance to their use. Bitcoin requires a lot of computer power to solve applications and mint brands.

However, Putin did not mince words in Russia’s efforts to get away with relying on the dollar.

“I believe the US is very wrong to use the dollar as a penalty,” he said. “We were forced. We have no choice but to move to another dollar.”

“In this case, we can say that the United States is biting the hand that pays,” Putin added. “This dollar is a competitive advantage. Money has been saved globally, and the United States today uses it to pursue political goals, and it harms their economic interests as a result.”

In June, Russia announced that it would drop US dollars from its economy.

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