Putin says crypto currencies too unstable to be used for oil contracts

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MOSCOW, Oct 14 (Businesshala) – Russian President Vladimir Putin said cryptocurrencies were too volatile to be used to settle oil contracts, but they still deserved a place as a means of payment.

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The Russian leader made the remarks in an interview with CNBC that was published on the Kremlin’s website on Thursday. He was asked if he might see oil contracts denominated in cryptocurrencies instead of dollars in the future.

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Russia has for years been trying to reduce its reliance on the US dollar, which is widely used to settle oil contracts, but it has not largely managed to achieve this, even though some firms have Have switched to merchandise traded in Euros.

“It is too early to talk about this because cryptocurrency can certainly be a payment unit, but it is very volatile. To move money from one place to another, yes, but I think it is still It’s premature to do business, especially to trade energy resources,” Putin said.

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Russia this year brought cryptocurrency regulation and has made it illegal to pay for goods and services in cryptocurrencies in the country, although it is legal to invest in them.

“It does exist and can be used as a means of payment, but trade in, say, oil, or other primary materials and energy sources – still, I think, it is a little early to talk about it. ,” Putin said.

The central bank has said that Russians investing in cryptocurrencies have the potential to become a significant problem. This points to the lack of transparency in the crypto markets as well as the huge risks involved due to the volatility there.

Although Russia may move to ban crypto purchases, Russians will still be able to buy currencies through foreign intermediaries, the bank has said.

Reporting by Tom Balmforth, Katya Golubkova, Elena Fabricnaya; Editing by Hugh Lawson

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