Jakarta, CNBC Indonesia – A number of superpower officials seem ‘uneasy’ with the rapid development of digital currencies cryptocurrency or crypto. The reason is, crypto does not need a central bank as physical currency rules. On the other hand, it has now become a means of payment for many things because it is considered to have value like conventional currency and is more efficient.
Russian President Vladimir Putin says crypto is indeed becoming more and more rampant, though he says he’s not convinced cryptocurrency can replace the United States (US) dollar in oil trading, for example.
This was stated in an interview in Moscow, Wednesday (13/10/2021). “It’s too early to talk about trading energy resources in crypto,” said Putin, when asked if the digital currency could be used as an alternative to the US dollar.
“I believe it has value. But I don’t believe it can be used in oil trading,” he continued.
Putin says cryptocurrency don’t have any support yet. “It may exist as a means of payment, but I think it’s too early to say about the oil trade in cryptocurrency,” he added.
The Russian leader also flagged crypto’s massive energy consumption as a potential barrier to its use. Bitcoin requires a lot of computing power to process transactions and print new tokens.
In addition to Russia, China has now included mining cryptocurrencies such as Bitcoin in a draft list of industries that are restricted or prohibited from investing. This sector is on this ‘negative list’ detailing sectors and industries that are off limits to Chinese and foreign investors.
The government led by President Xi-Jinping has indeed banned crypto trading and mining this year. China’s central bank is also committed to cleaning up activities cryptocurrency illegal last month.
At the discretion of the two exchanges cryptocurrency largest, Huobi and Binance, cut ties with users in China. Huobi suspended new user registrations from mainland China and will terminate contracts with users in China by the end of this year.
“Huobi Global will orderly exit the existing mainland China clients and ensure the safety of their assets,” Huobi said.
(Cha Cha dance)
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