Russian President Vladimir Vladimirovich Putin stated on December 4 at a financial summit organized by VTB Bank that cryptocurrencies like Bitcoin could become a better alternative for foreign exchange reserves, as no one can resist Bitcoin. As Russia's foreign exchange reserves are gradually being frozen by Western countries, Russia is actively turning to digital asset reserves.
If reserves can be frozen so easily, why accumulate them? Putin discusses Bitcoin as a prime choice
In December, at a financial summit hosted by VTB Bank, Putin questioned the necessity of traditional foreign exchange reserves. He stated, 'Since reserves can be frozen so easily, why accumulate them?' This statement directly reflects the tense relationship between Russia and Western countries since the Russia-Ukraine war.
Since the outbreak of the Russia-Ukraine war in 2022, the United States and its allies have frozen about $300 billion of Russia's foreign exchange reserves, impacting the Russian economy. Putin further pointed out that this move has harmed the reputation of the dollar as a primary reserve asset, and revealed that cryptocurrencies, including Bitcoin, are becoming new options. He said, 'Who can resist assets like Bitcoin? No one can.'
Western sanctions drive Russia to embrace cryptocurrency
The Russian government has previously held a conservative or even hostile attitude towards cryptocurrency, having proposed a total ban in 2022. However, under the pressure of economic sanctions from Western countries, the Russian government has significantly changed its stance, gradually accepting digital assets as an economic response solution.
Now the Russian government not only allows digital currency payments but also plans to launch a 'digital ruble' by July 2025. Last week, Putin signed a bill to establish a legal framework for taxing cryptocurrency mining and trading, expecting to generate 2 billion dollars worth of ruble income annually from crypto miners.
Putin signs cryptocurrency mining and trading taxation bill
(The Russian government has approved a cryptocurrency taxation bill, exempting value-added tax and incorporating trading income into securities income)
Call for BRICS to establish a new payment system and explore new avenues
Besides Bitcoin, Putin is also optimistic about the future development of electronic payment systems. In October this year, he called for BRICS nations to establish a new payment system to address Russia's exclusion from the SWIFT system, indicating Russia's commitment to establishing a financial system outside of the dollar.
Putin calls for the establishment of a new payment system at the 2024 BRICS conference
This article, 'Putin supports Bitcoin: Cryptocurrencies as an alternative for foreign exchange reserves, BRICS needs to establish a financial system outside of the dollar,' first appeared in Chain News ABMedia.
