As Bitcoin prices continue to rise, Russia, with half of its foreign exchange reserves frozen, is turning its attention to decentralized Bitcoin assets. Russian lawmakers have proposed establishing a strategic Bitcoin reserve and introducing new payment systems, which could not only mitigate sanction risks but also yield significant profits.
Russian lawmakers have proposed establishing a strategic Bitcoin reserve.
According to reports from RIA Novosti, Russian State Duma member Anton Tkachev has proposed establishing a strategic Bitcoin reserve for Russia.
Russian State Duma member Anton Tkachev has proposed to the Russian Federal Minister of Finance Anton Siluanov to establish a Bitcoin strategic reserve in Russia similar to traditional currency reserves.
Due to geopolitical instability, traditional foreign exchange reserves, including the renminbi, US dollar, and euro, are threatened by volatility, sanctions, and inflation, posing risks to Russia's financial stability. Russia not only needs to introduce new payment systems but also requires alternative tools for reserves that do not rely on a single country.
In the context where sanctioned countries have limited access to traditional international payment systems, cryptocurrencies are effectively becoming the only tool for international trade. The Russian central bank is preparing to launch an experiment in cryptocurrency cross-border settlements. Tkachev pointed out that in recent years, Bitcoin has been one of the highest-yielding assets among all investment assets. By December 2024, its cost is projected to reach $100,000, making Bitcoin not only a means of value storage but also an opportunity to earn significant profits.
About half of Russia's foreign exchange reserves are frozen.
As of November 2024, Russia's foreign exchange reserves amount to approximately $631.6 billion. These reserves include foreign currencies, gold, and other international reserve assets. The gold reserves are valued at $207.7 billion, accounting for 32.9% of Russia's international reserve assets, the highest record since November 1999.
Since February 2022, when Russia initiated a special military operation in Ukraine, Western countries have imposed sanctions on Russia, resulting in the freezing of both sovereign assets and private investors' funds. Approximately €300 billion of Russia's foreign exchange reserves are frozen, with around €200 billion held within the EU, mostly in the accounts of Euroclear, the world's largest clearing and settlement system.
The Russian Ministry of Foreign Affairs recently stated that the freezing of Russian assets in Europe constitutes theft.
Russian President Vladimir Vladimirovich Putin stated at a financial summit hosted by VTB on December 4 that cryptocurrencies like Bitcoin could become a better alternative for foreign exchange reserves, asserting that no one can stop Bitcoin.
(Putin supports Bitcoin: Cryptocurrency as an alternative for foreign exchange reserves, BRICS needs to establish a financial system beyond the US dollar)
This article on the proposal to establish a Bitcoin reserve by Russian lawmakers: mitigating sanction risks while earning significant profits first appeared in Chain News ABMedia.
