Key Highlights:
- Russian lawmaker proposes a Bitcoin reserve to counter sanctions and inflation risks.
- Regulatory changes in Russia now exempt crypto transactions from VAT and legalize Bitcoin mining in select regions.
Paradisers! Could Russia be about to add Bitcoin to its national treasure chest? In a move that could shake up the global financial system, Russian State Duma Deputy Anton Tkachev has proposed creating a Bitcoin reserve.
Citing the cryptocurrency’s independence from sanctions and inflation risks tied to traditional currencies like the dollar and euro, Tkachev submitted his proposal to Finance Minister Anton Siluanov.
Tkachev’s idea comes as Russia inches closer to embracing crypto on a national scale. President Vladimir Putin recently declared that Bitcoin “cannot be banned,” a confidence-boosting statement that coincided with BTC breaking past the $100,000 mark after weeks of hovering near $95,000.
Why Bitcoin?
The proposal argues that Bitcoin offers a hedge against sanctions and economic instability. Tkachev sees it as a “strategic asset” that could provide Russia with a financial buffer in turbulent times. While the idea may sound radical, Russia isn’t alone in considering Bitcoin for national reserves.
Take El Salvador: they’ve been there, done that, and are now reaping the rewards. Their Bitcoin reserve, started in 2021, has grown to over $554 million, with unrealized gains nearing 120%. Even in the U.S., Pennsylvania recently floated the idea of allocating 10% of state funds to Bitcoin as a hedge against inflation, a strategy that has sparked whispers of a national Bitcoin reserve under the Trump administration.
Regulatory Winds of Change in Russia
Russia’s evolving crypto policies make Tkachev’s proposal more than just wishful thinking. Recent regulatory shifts have exempted crypto transactions from VAT and set a flat 15% tax rate on profits, similar to securities. Earlier this year, Russia also legalized Bitcoin mining, though restrictions apply in regions like Siberia during the winter to manage electricity demand.
However, certain areas remain off-limits. Mining is strictly prohibited in occupied Ukrainian territories such as Donetsk and Lugansk.
Will Russia Make the Leap?
While it’s unclear if the Bitcoin reserve proposal will gain traction, it aligns with Russia’s broader efforts to optimize crypto regulations and reduce reliance on traditional financial systems.
If adopted, a Russian Bitcoin reserve could position the nation as a leader in crypto-backed financial stability, joining the likes of El Salvador and possibly the U.S. under a pro-crypto Trump administration. For now, all eyes are on Moscow as the world waits to see whether Russia will take this bold step into the future of finance.
