Crypto is certainly going places. Russian President Vladimir Putin is the latest to recognize crypto. However, the chances of it toppling the US dollar for oil trades were still bleak, the Russian Prez noted.
The dominance of the dollar has remained untethered. The sanctions surrounding the dollar have been driving several countries away from the US. Back in June, Russia went on to bid adieu to USD from its sovereign wealth fund. This further raised questions about what currency the country would opt for next.
During the Russian Energy Week, Vladimir Putin was asked if he saw cryptocurrencies as a potential means of payment for the oil trade. The Russian president pointed out that the crypto industry entailed value. However, he didn’t think that it could be used in the oil trade.
Vladimir Putin talks crypto at Russian Energy Week
Despite witnessing impeccable growth in its value, the crypto market has time and again been called out for not being backed by anything. Taking out a leaf from this book, Vladimir Putin explained in detail why crypto for the oil trade was a far-fetched idea. He explained,
“Cryptocurrency is not supported by anything as of yet. It may exist as a means of payment, but I think it’s too early to say about the oil trade in cryptocurrency.”
Furthermore, he suggested that it was “too early to talk about the trade of energy resources in crypto.” This restored hope for many as Putin didn’t outrightly drop the chances of employing crypto.
The crypto-verse garnered endorsements and support from an array of people from across the globe. The growth of the industry caught the eye of many, while Putin’s latest statement revealed that he considers crypto to have value, he also listed the shortcomings of the industry. One such issue that the crypto-verse faces are the environmental damage that Bitcoin does.
Tesla’s Elon Musk without a second thought dropped support for Bitcoin following his realization about the damage that the mining process does to the environment. Talking about the same, Vladimir Putin proposed that the extensive consumption of energy by crypto could act as an obstruction to its progress.