Russian President Vladimir Putin believes that it is “still too early” to use cryptocurrency to make settlements with energy resources such as oil.

The Russian president discussed possible options for using cryptocurrencies in an interview with CNBC Thursday after the plenary session of the Russian Energy Week forum.

According to the full interview, which was published on the official Kremlin website, Putin said that private cryptocurrencies “can function as a unit of account,” but are “very volatile.”

Cryptocurrency oil contracts? It’s too early to talk about this. And the president said he’s working to transfer money from one place to another, but from a business point of view, especially after energy resources, in my opinion, it’s still early days.”

“Everything is developing” and “has a right to exist,” Putin added, adding that the Russian government is keeping a close eye on the cryptocurrency market. He also did not rule out the possibility that at some point cryptocurrencies could become a “protection”. – We see that this market is fluctuating. “It’s a little early today,” Putin added.

The president said cryptocurrencies are “not backed by anything yet.” When asked if he considers Tesla CEO Elon Musk’s crypto holdings “useless,” Putin answered in the negative, explaining that he only questioned cryptocurrency as a unit of account in energy trade.

On the subject: Russia has no plans to follow in China’s footsteps and ban cryptocurrency altogether, says the deputy finance minister.

The Russian president also said during the interview that the dollar “undermines its status” as an international reserve. “We are not interested in a complete cessation of dollar payments, and so far we are happy with dollar payments for energy resources, especially oil,” he added.

This news comes as the Russian authorities consider a new law restricting investment in cryptocurrencies by unaccredited investors. Earlier, it was reported that the Russian Central Bank plans to slow down transactions with cryptocurrency exchanges to protect private investors from “emotional” cryptocurrency purchases.

Source: CoinTelegraph