Russian President Vladimir Putin believes that it is “premature” to use cryptocurrencies to define trade in energy resources such as oil.

The Russian president discussed the potential uses of cryptocurrencies in an interview with CNBC on Thursday after the plenary session of the Russian Energy Week forum.

According to the full text of the interview, which was published on the official website of the Kremlin, Putin said that private digital currencies “can function as a unit of account,” but that they are “very volatile.”

“Cryptocurrency oil contracts? It’s too early to talk about that. It’s moving money from one place to another, but when it comes to trade, especially when it comes to energy, in my opinion, it’s still very early days,” he said. … President.

Putin went on to say that “everything evolves” and “has a right to exist,” adding that the Russian government is keeping a close eye on the cryptocurrency market. Nor did he rule out the possibility that cryptocurrencies could at some point become a “store of value.” “We’re seeing this market fluctuate. It’s a little early today,” Putin added.

The president said cryptocurrencies are “not backed by anything yet.” When asked if he considers Tesla CEO Elon Musk “useless,” Putin answered negatively, explaining that he questioned cryptocurrency as a unit of account only in the context of energy trading.

On the subject: Russia has no plans to follow in China’s footsteps and directly ban cryptocurrencies, says the deputy finance minister.

The Russian president also said during the interview that the dollar “undermines its status” as an international reserve. “We are not interested in a complete reduction in dollar payments, and so far we are satisfied with dollar payments for energy resources, especially oil,” he added.

This news comes as the Russian authorities are studying a new law restricting investment in cryptocurrencies by unaccredited investors. Previously, the Russian Central Bank was planning to slow down transactions with cryptocurrency exchanges in order to protect retail investors from “sentimental” cryptocurrency purchases.

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