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

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MOSCOW, Oct 14 (Reuters) – Russian President Vladimir Putin mentioned that crypto currencies had been too unstable to be used to settle oil contracts however that they nonetheless deserved a spot as a way of cost.

The Russian chief made the remarks in an interview with CNBC that was revealed on the Kremlin’s web site on Thursday. He was requested if he may see oil contracts being denominated in cryptocurrencies as an alternative of {dollars} in future.

Russia has for years been attempting to decrease its dependence on the U.S. greenback, which is extensively used to settle oil contracts, nevertheless it has not managed to obtain that on a large-scale though some corporations have switched to buying and selling commodities in euros.

“It’s too early to talk about that for now because cryptocurrency can of course be a payment unit, but it is very unstable. To transfer funds from one place to another, yes, but I think it’s still premature to trade, especially to trade energy resources,” mentioned Putin.

Russia introduced in crytocurrency regulation this yr and has made it unlawful to pay for items and companies in cryptocurrencies within the nation, although it’s authorized to put money into them.

“It has a place to exist and can be used as a means of payment, of course, but trade in oil, say, or other primary materials and energy sources – still, it seems to me, it is a bit early to talk about this,” Putin mentioned.

The central financial institution has mentioned Russians investing in cryptocurrencies has the potential to turn out to be a major downside. It factors to the dearth of transparency on crypto markets in addition to large dangers concerned due to the volatility there.

Although Russia may transfer to ban crypto purchases, Russians would nonetheless be ready to purchase the currencies through overseas intermediaries, the financial institution has mentioned.

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

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