Russian President Vladimir Putin said that while cryptocurrencies may have some value, it is too early to say whether they can be used in oil trading.
“I believe it has value,” he said when asked if Bitcoin or cryptocurrencies could be used instead of the US dollar, he told CNBC at the Russian Energy Week event in Moscow on Wednesday, “But I don’t believe it could be used in oil trading.”
Russia is considering replacing the dollar in its crude oil payments in response to challenges from the Joe Biden administration and economic sanctions imposed by the United States. But it may be premature to consider cryptocurrencies as a substitute, according to Putin.
“Cryptocurrency is not supported by anything yet. It may exist as a means of payment, but it is too early to say anything about oil trading in cryptocurrency.”
Putin also predicted that oil could rise from current around $80 to $100 a barrel as global demand surges in a tightening market. He also noted that the negative environmental impact of Bitcoin mining, which is said to account for roughly 0.5% of energy consumption worldwide, is another hurdle the digital asset faces for widespread use. But he suggested that Russia is still willing to forego dollar-denominated payments.
“I believe the US made a big mistake in using the dollar as a sanction tool. […] We are struggling. We have no choice but to switch to transactions in other currencies.”