The Russian president spoke about his double vision of cryptocurrencies. According to him, so far the best position will be to stand by and watch where the crypto market is going to.
Russian President Vladimir Putin expressed concern about the growing popularity of cryptocurrencies. Answering the question of CNBC journalist Headley Gamble at the investment forum "Russia Calling!" organized by VTB Capital, he said:
“In some countries, cryptocurrency is used, and in some countries, they are totally prohibited. In my opinion, it is prohibited in China, in some other 3-4 countries. They are not backed by anything, their volatility is huge, so the risks are very high. I also believe that you need to listen to those who talk about these big risks."
Putin admitted that over time, cryptocurrencies could be used as units of account, but doubted that this would happen in the near future.
“In order to transfer funds from one place to another, yes [they can be used], but to trade, especially to trade in energy resources, in my opinion, their usage is still premature. It exists and can be used, of course, as a means of payment but it is too early to talk about its usage for oil trading or other primary materials and energy sources."
At the same time, Putin does not believe that cryptocurrencies should be banned. In his opinion, this is a new phenomenon that should be closely monitored.
"Maybe they are the future, but we need to closely monitor how this process develops."