The president of the Russian Federation, Vladamir Putin, has recently shared his thoughts on cryptocurrencies, confessing that they can function as a medium of trade and cross-border settlements.
While in an interview with CNBC, Putin noted that Bitcoin and other cryptocurrencies could someday be used as a unit of account.
Too Early For Crypto And Oil Trades
While Putin recognized the prospect of crypto in the payments sector, it is “still too early” to claim that crypto would replace the U.S. dollar when settling oil trades. This is because of the precarious nature of the asset class.
“It’s too early to discuss this because crypto, of course, can be a unit of account, but it is precarious. To move funds from one account to another – yes. But to trade, especially in energy resources, in my opinion, is still premature.”
Putin added that no tangible assets back up crypto. This only heightens his sense of uncertainty about utilizing crypto for oil trades.
Nonetheless, the president pointed out that the digital asset investments made by prominent individuals, like Elon Musk, are not worthless. In truth, Putin had analyzed the benefits of using crypto when settling oil trades.
Room for Growth
President Putin is confident that the arising asset class will one day develop as a viable alternative to the U.S. dollar when trading energy resources like oil.
“But everything develops, and everything has the right to exist. We will see how it will decide to go forward. Someday, it may be a means of accumulation. We see this market fluctuate. Today, it’s a bit early.”
Russia Different Than China
Russia may not be the most crypto-friendly country in the world. Still, Russia is not nearly as strict as its neighbor China on the crypto industry.
The Russian Deputy Finance Minister announced that the country would not ban bitcoin despite attempts by government officials to push new regulations restricting digital asset investments made by non-accredited investors.
Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.