Russia wants to beat America to Bitcoin. The plan? A national Bitcoin reserve. If Vladimir Putin pulls this off before Donald Trump’s America, it won’t just be a win for Russia, it could literally tilt the balance of economic power.
Both countries are moving fast, but their strategies couldn’t be more different. While Putin views Bitcoin as a weapon to break free from U.S. dominance, Trump wants to use it to strengthen America’s financial grip.
Donald Trump. Credits: Reuters
Russia has already faced over 18,700 sanctions since its invasion of Ukraine a few years ago. The country’s $300 billion in foreign reserves is frozen, leaving Putin with few options. Bitcoin offers a way out. Trump, set to take office in January, has his eyes on the same prize. The question is, who gets there first?
Putin’s plans
Earlier this month, Russian lawmaker Anton Tkachev proposed a strategic Bitcoin reserve. This isn’t about hoarding crypto, it’s about survival. Bitcoin is decentralized, immune, and—most importantly—outside the control of Western financial systems.
Tkachev’s proposal aligns with Putin’s public statements calling Bitcoin an “uncensorable asset.” Russia is already exploring Bitcoin-friendly policies. The government sees crypto as a way to bypass international financial blockades.
With countries like El Salvador and Poland already holding Bitcoin in their reserves, Russia wants in. Putin’s administration is even looking at using Bitcoin mining as a new revenue stream. With its energy resources, Russia could dominate the mining industry and create an entirely new financial system for the BRICS+.
“To use the dollar as a tool of foreign policy struggle is one of the biggest strategic mistakes made by the US political leadership,” Putin has said. “We had no such intention [to reduce dollar usage]. It was the decision of the United States to restrict our transactions in US dollars.”
Trump’s ambitions
Meanwhile, Trump’s ambitions start with the 200,000 bitcoins already seized by the federal government—worth about $21 billion—and build from there. The U.S. president also floated selling off parts of America’s gold reserves to fund more Bitcoin purchases.
Trump isn’t doing this alone. Senator Cynthia Lummis, a longtime Bitcoin lover, proposed legislation to acquire one million bitcoins over five years. That’s about 5% of the total supply.
U.S. Senator Cynthia Lummis
The U.S. government would finance the purchases using surplus Federal Reserve profits and by re-evaluating state-held gold certificates. But Fed chair Jerome Powell seems set to fight against it.
Trump’s plan is as much about optics as it is about strategy. He wants to counter Russia and China, both of whom are exploring crypto as a way to challenge the U.S. dollar.
The global implications of a Bitcoin race
If Russia and the U.S. go all in on Bitcoin, the world will feel it. Bitcoin’s capped supply of 21 million tokens means that any large-scale accumulation will drive up prices. Smaller nations will be priced out, while the two superpowers battle for dominance.
Critics say this could lead to market manipulation, with each country trying to outmaneuver the other. For Russia, a Bitcoin reserve could attract other sanctioned nations like Iran or North Korea. These alliances could create a parallel financial system that undermines the U.S.-led global order.
On the other hand, America’s reserve would serve to stabilize its financial position, especially as more countries question the dominance of the U.S. dollar.
The rivalry doesn’t stop with reserves. Both countries could ramp up Bitcoin mining operations to gain more control over the network. Russia has the energy resources, while the U.S. has the tech infrastructure. If either side gains a huge share of Bitcoin’s hashing power, it could tilt the balance in their favor.
Putin and Trump: A complicated dynamic
The perceived friendship between Putin and Trump is nothing short of bizarre. Trump has publicly praised Putin, calling him “smart” and “strong,” but their interactions have always been under scrutiny. There have been allegations of Russian interference in the 2016 U.S. election that Trump won.
Since leaving office in 2021, Trump says he hasn’t spoken to Putin. But after his recent election win, Putin congratulated him, calling him “intelligent and experienced.” Notably, he still hasn’t made a direct call, relying instead on informal channels to deliver his message.
Donald Trump and Vladimir Putin
The cautious nature of their communication shows that neither side is fully ready to trust the other. Trump, for his part, has promised to end the Ukraine war “within 24 hours” of taking office. While he hasn’t shared how he plans to do this, his comments have raised eyebrows in Kyiv.
Many suspect that any deal would favor Russia, especially given Trump’s history of liking Putin. A fight over Bitcoin would definitely strain their relationship some more.
