Source: CryptoSlate
Translated by: Blockchain Knight
Russian President Putin recently stated that BTC and digital currencies are unstoppable and positioned them as key tools for "reducing financial inefficiencies" and "enhancing economic stability."
On December 4, Putin spoke at an investment forum in Moscow, advocating for BTC as a global reserve asset instead of the dollar.
Moreover, Putin criticized the U.S. government for using the dominance of the dollar to further control the currencies of other countries, thereby influencing their politics.
Putin pointed out that after the outbreak of the Ukraine war in 2022, Western countries froze Russia's $300 billion reserves. This prompted many countries to start looking for uncontrolled alternatives, such as BTC.
Putin added, "Who can prohibit BTC? No one can. Who can prohibit the use of other electronic payment means? No one can either."
"These technologies will continue to develop as everyone seeks low-cost and highly reliable payment methods."
Before Putin's comments, Russia had just enacted a new law that officially classifies crypto assets as property.
The law provides tax incentives for digital transactions conducted through electronic payment systems and exempts crypto mining and sales from value-added tax.
The legal recognition of crypto assets demonstrates Russia's commitment to fostering innovation within its financial system.
This also reflects Russia's thoughtful approach to mitigating external financial pressure by adopting digital assets.
During the Russia-Ukraine conflict, crypto assets played a key role in countering Western sanctions, enabling people on both sides to send and receive currency amid the challenges brought by the war.
Additionally, recent discussions at the BRICS summit also emphasized the potential of digital currencies, particularly in facilitating cross-border payments and challenging the dominance of traditional financial systems.
Putin's recognition of BTC and his call for technological application contrasts sharply with recent U.S. initiatives, including Trump's proposal to establish a national BTC reserve.
The incoming U.S. government's support for crypto assets is expected to bring a more friendly regulatory environment to the industry, ultimately driving other countries to adopt a more positive attitude toward the technology.
