Accusing the United States of devaluing the U.S. dollar through money laundering and sanctions policies, President Vladimir Putin acknowledged that cryptocurrency could be used for future settlements, although it was too early to do so in the oil business. Noting that it lacks support, the Russian leader assumed that crypto could one day be used to save money.
Putin says the branch that the United States is cutting is being cut
In an interview with CNBC this week, Russian President Vladimir Putin said the US dollar-money settlement was declining and countries were reducing their dollar reserves. After attending the 20th annual Russian Energy Forum in Moscow on Wednesday, Putin criticized Washington’s monetary and international policy, saying “the United States is cutting off the branch on which it sits.”
The status of the dollar as an international reserve currency is a major competitive advantage, the Russian head of state noted but warned that U.S. authorities are undermining it by increasing sovereign debt and rising inflation, while using the dollar as a “big mistake” to impose sanctions abroad. All of this is driving Russia and other countries away from the US currency. Putin explained:
Our clients can’t just pay in dollars for the products we deliver to them. What happens next? We have no choice but to go to other currencies in our settlement.
Cryptocurrency is legal, it has the right to exist
Asked by CNBC’s Hadley Gamble if oil deals could be offered in currencies other than the US dollar, including crypto, Vladimir Putin commented that “it seems premature.” At the same time, the President of the Russian Federation acknowledged that despite the current instability, cryptocurrency could be used in oil business settlements at some point in the future.
“It’s okay to transfer funds from one place to another, but I think it would be premature to use it in trading, especially when working with energy resources,” said the Russian strongman, adding that cryptocurrencies have no support. Nevertheless, he emphasized:
It is legal and can be used in settlements, no doubt, but it is too early to use it to trade in oil or other raw materials and energy sources.
Things could change, and Putin is convinced that “everything has a right to exist. We’ll see how it goes from here. Maybe crypto will one day be used to save money. But we’re seeing how the market fluctuates, so it seems too early now …” Of course, there is value, ”the president thought.
Vladimir Putin also mentioned the energy-intensive process of withdrawing cryptocurrencies. “In order to mine crypto, you need a lot of energy, and for that people need to use hydrocarbons, a traditional source of natural energy, primarily hydrocarbons,” the Russian president said in an interview published by the Kremlin.
Putin’s latest remarks come after a statement from his press secretary, Dmitry Peskov, in early September that Russia was not yet ready to recognize Bitcoin. He revealed the current position of the executive branch in Moscow after El Salvador’s move to take the top currency through the market cap, BTC, as a legal tender, along with the US dollar.
Although Russian officials have said on many occasions that cryptocurrency will not be accepted as a means of payment – as it is seen as a prohibited money surrogate – the country is moving towards controlling its crypto space. These include the adoption of relevant legislation such as the “On Digital Financial Assets” Act. Deputy Finance Minister Alexei Moisiev recently said Russia does not plan to follow in China’s footsteps and will ban its citizens from buying cryptocurrencies.
Do you think Russia will start using cryptocurrency in the future to pay for oil trade? Let us know in the comments section below.
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