In an environment where most heads of state are against cryptocurrencies, positive statements about cryptocurrencies came from Russian President Putin. In a recent interview with CNBC, Putin said that crypto assets “have a right to exist and can be used as a means of payment.”
Putin’s comment on viewing cryptocurrencies as a potential means of payment comes at a time when the US and several other European countries are considering strict regulation of the crypto market. The Russian President also noted that the technology is relatively new and therefore unstable, but over time it could become a legitimate tool for payments.
“Cryptocurrency is not supported by anything yet. There is and of course it can be used as a calculation tool. However, it seems to me that for now it is too early to talk about it.”
But everything evolves, everything has a right to exist. We’ll see how it goes further, maybe one day it can become a savings tool. We see this market fluctuating. It’s a little early today.”
The Russian leader responded to the question about “whether cryptocurrencies such as Bitcoin will be used in oil and gas trade”, referring to the volatile nature of cryptocurrencies, with the following statements:
“It can be done in principle, but it’s too early for that.”
In addition to these statements, Putin also stated that cryptocurrencies can be used to “transfer money from one place to another”. He also said that he sees the huge energy consumption of cryptocurrencies as a potential barrier to their use.
Putin’s comments on the cryptocurrency market reflect that Russia has not completely rejected crypto assets. Russia has also faced sanctions from the US since 2014, and the growing popularity of digital assets could help the country overcome trade sanctions, just as Iran is trying to do using Bitcoin.
The US, on the other hand, has reassured that it has no plans to ban crypto outright like China does, but the strict policies and regulatory pressure threatened by the SEC could certainly stand in the way of crypto market growth.