Russian president Putin says crypto 'has value'

He has some concerns

On Thursday, Russian President Vladimir Putin gave a half-hearted approval of cryptocurrencies such as Bitcoin.

Big barrier

During the event, he mentioned that cryptocurrency might be accepted as a legitimate payment option in the future, but most likely not any time soon. The main concern he has is that cryptocurrencies’ large consumption of energy is the barrier to their use, as they require lots of computer power to process transactions and mint new tokens.

Much value

“The cryptocurrency is not backed by anything yet. It exists and as a means of calculation can be used, of course, yes, but trading in oil, say, or other primary materials and energy sources—still, it seems to me, it’s too early to talk about this for now,” Putin said at at the Russian Energy Week event in Moscow Wednesday.

Creating problems

Russia’s minister of energy, Nikolay Shulginov, also shared concerns about the use of cryptocurrency, but this time about crypto mining. He complained that Russia can’t let miners capitalize on the situation at the expense of low residential electricity tariffs, and that it is necessary to prohibit miners from consuming electricity at residential tariffs, in order to maintain the quality of power supply.

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