Russian President Vladimir Putin made the new remarks during an interview with CNBC, which was posted on the Kremlin’s website on Thursday, advising increasing tolerance for bitcoin and cryptocurrencies. Bloomberg Report
“I believe it’s worth it,” Putin told CNBC’s Hadley Gamble at the Russian Energy Week event in Moscow on Wednesday. “But I don’t believe it can be used in the oil business.”
Concerns have been raised about how Russia will pull out of the dollar-based oil deal because of US economic sanctions.
Putin said that bitcoin and crypto could exist as a means of payment, but that it was “too early” to talk about settling unpaid deals in bitcoin or crypto instead of dollars.
The Russian president expressed concern about the energy costs needed to maintain the Bitcoin network, but said he had a clear intention to move Russia away from its dependence on the US dollar.
“I believe the United States has made a big mistake in using the dollar as an instrument of approval,” he said. “We are compelled. We have no choice but to trade in other currencies. In June, Russia announced that it would withdraw US dollar assets from its sovereign wealth fund.
Putin added, “In this regard, we can say that the United States has bitten the hand that ate it.” “This dollar is a competitive advantage. It is a universal reserve currency, and the United States uses it to achieve political goals and as a result they harm their strategic and economic interests.”
Although it is too early to say whether Russia is considering Bitcoin as a resource for dollar replacement, it is clear that officials understand that the dollar is not as effective as a reserve currency in the long run and that Bitcoin could be a potentially neutral option.
Dmitry Peskov, acting press secretary to Russian President Vladimir Putin, said Russia had no reason to recognize Bitcoin.
Many Bitcoins are interested in seeing which country will accept Bitcoin in the next official state power. While Russia may not be a near-term competitor to accept Bitcoin, its government is talking about it because it is on the table.