Russia Proposes Strategic Bitcoin Reserve to Enhance Financial Stability
Russian State Duma Deputy Anton Tkachev proposed establishing a strategic Bitcoin reserve to enhance the country's financial stability. Tkachev submitted this suggestion to Finance Minister Anton Siluanov, emphasizing Bitcoin's potential as an independent asset unaffected by international sanctions and inflation risks linked to traditional currencies such as the dollar, euro, and yuan.
This proposal coincides with Russia's apparent shift towards more favorable cryptocurrency regulations. President Vladimir Putin stated that Bitcoin cannot be banned and is expected to continue growing, contributing to Bitcoin surpassing the $100,000 milestone after hovering near $95,000 for weeks.
On the regulatory side, Russia has implemented notable changes. Cryptocurrency transactions are now exempt from VAT, and profits from crypto activities are taxed at 15%, similar to securities. Earlier this year, Bitcoin mining was legalized, though restrictions apply in certain regions. Mining is banned in occupied Ukrainian territories like Donetsk and Lugansk, and there are seasonal restrictions in Siberia during winter months to manage electricity demand.
The concept of a national Bitcoin reserve is not exclusive to Russia. In the US, Pennsylvania proposed allocating 10% of state funds to Bitcoin as an inflation hedge and investment strategy. There is optimism that Donald Trump might consider establishing a national Bitcoin reserve following his inauguration in January. Investment firms like VanEck have also endorsed Bitcoin as a reserve asset.
El Salvador pioneered this approach by introducing its Bitcoin reserve in 2021, holding over $554 million worth of BTC, with unrealized profits nearing 120%. Russia's interest in adopting a similar strategy reflects a global trend towards increasing utilization of Bitcoin as a strategic financial asset.
It remains uncertain whether Russia will advance Tkachev's proposal, but it aligns with the country's recent initiatives to refine its crypto regulations and explore alternatives to traditional financial systems.