Putin says cryptocurrencies are too unstable to use for oil contracts.

Russian President Vladimir Putin will speak at the main conference of the Russian Energy Week International Forum held in Moscow, Russia on October 13, 2021. Sputnik / Mikhail Metsel / Pool through Reuters Attention Editor-This image was provided by a third party.

October 14, 2021

Moscow (Reuters) -Russian President Vladimir Putin said cryptocurrencies are too volatile to be used to settle oil contracts, but still deserve a place as a means of payment.

Russian leaders spoke in an interview with CNBC published on the Kremlin website on Thursday. He was asked if he could see oil contracts denominated in cryptocurrencies instead of dollars in the future.

Russia has long sought to reduce its reliance on the US dollar, which is widely used to settle oil contracts, but on a large scale, despite some companies switching to trading commodities in the euro. Could not be achieved.

“It’s too early to talk about it for now, as cryptocurrencies can be payment units, of course, but it’s very volatile. It’s possible to move funds from one place to another. But I think it’s still too early to trade, especially to trade energy resources, “Putin said.

Russia introduced cryptocurrency regulations this year, making it legal to invest in goods and services in domestic cryptocurrencies, but making it illegal to pay for them.

“It has a place to exist and can of course be used as a means of payment, but trading oil, for example, or other major materials or energy sources-still, to me, it seems a bit early to talk. This, “Putin said.

The central bank says Russians investing in cryptocurrencies can be a serious problem. It shows the lack of transparency in the crypto market and the great risks associated with its volatility.

Russia may move to ban the purchase of cryptocurrencies, but Russians can still buy currency through foreign intermediaries, banks said.

(Report by Tom Balmforth, Katya Golubkova, Elena Fabrichnaya, edited by Hugh Lawson)

Putin says cryptocurrencies are too unstable to use for oil contracts

Source link Putin says cryptocurrencies are too unstable to use for oil contracts


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