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Stunning Comments from the President of Russia on the Future of Cryptocurrencies

Şükriye Akdeniz

Oct 14, 2021

Russian President Vladimir Putin comments on the dollar, cryptocurrencies

In an interview with CNBC, Russian President Vladimir Putin stated that cryptocurrencies are undermining the dollar's position as the world's reserve currency. According to Putin, the United States is making a huge mistake by making its money a tool for sanctions. Putin, who thinks that countries are moving away from the dollar as a result of using it as a sanctioning tool, also added that the policy causes increased debt and inflation.
According to Putin, it is too early to come to a firm opinion on digital currencies:
“If the market matures, they could be used as hoarding tools in the future, but cryptocurrencies are out of the question for commodities trading.”
In economics, hoarding refers to the purchase and storage of large quantities of a commodity such as gold. Buyers usually aim to profit from future price increases of the commodity.
According to the Russian president, cryptocurrencies are too unstable and insecure to be used in the oil and gas trade:
“It's too early to talk about it because cryptocurrency can be an accounting unit, of course, but it's very unstable. It can be used to transfer funds from one place to another, but I think it is too early to trade energy resources. But everything evolves, everything has a right to exist. Let's see how it will go further, maybe one day it can be a means of accumulation.”
Putin added that cryptocurrencies are not backed by anything and are currently very volatile in the open market and it is too early to talk about them as any form of raw material trading.

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