In the just concluded Russian Energy Week that was held in Moscow, President Vladmir Putin made comments on the contemporary issues facing the Russian oil trade sector and the possible role of crypto.
In his address, Putin noted that Russia was no longer comfortable with the use of the United States Dollar as a bench currency for trading oil. Thus, the country is looking for a better alternative.
“I believe the U.S. makes a huge mistake in using the dollar as a sanction instrument. We are forced. We have no other choice but to move to transactions in other currencies,” he declared.
On this note, the Press interviewed him on whether or not Russia will recourse to crypto as a bench currency for energy transactions. He replied that while crypto has “value”, he doesn’t think it’s matured for use in the energy ecosystem.
Apart from that, he said the adoption of crypto or Bitcoin as a mode of payment is still a subject of discussion in so many countries. Except for El-Salvador that has legalized Bitcoin as a legal tender.
Quoting his words, “I believe that it has value, but it is not supported by anything as of yet. It may exist as a means of payment, but I think it’s too early to say about the oil trade in cryptocurrency.”
Moreover, Putin raised concern that the way Bitcoin mining consumes excessive energy is itself a strong point which would not make him recommend it as a mature currency in the energy sector. This was one of the reasons China expunged miners.