Russian Lawmaker Proposes Creating Strategic Bitcoin Reserve for Russia

DANIEL KIM 승인 2024.12.10 11:22 의견 0


A Russian lawmaker has suggested creating a national Bitcoin reserve to protect Russia’s financial stability amid ongoing geopolitical risks and international sanctions.

Anton Tkachev, a deputy from the “New People” party in the State Duma, submitted an official appeal to Finance Minister Anton Siluanov, urging the establishment of a Bitcoin reserve similar to traditional state reserves that hold foreign currencies such as the US dollar and euro.

In his letter, Russian lawmaker Anton Tkachev highlighted the limitations of traditional foreign exchange reserves, which are vulnerable to volatility, inflation, and sanctions.

These challenges, he argues, pose a risk to Russia’s financial stability.

He proposed Bitcoin as an alternative reserve asset, noting that digital currencies are not subject to the controls or financial systems of individual countries.

This makes them more resilient in the face of geopolitical tensions.

This move precedes an enonomist Peter Schiff motion projection that the Biden admin should sell all US government’s Bitcoin holdings.

“With limited access to international payment systems for countries under sanctions, cryptocurrencies like Bitcoin could become essential tools for global trade,” Tkachev wrote.

He emphasized that Bitcoin’s decentralized nature makes it an ideal asset for Russia to store its reserves, enabling it to bypass traditional financial systems and avoid sanctions.

Tkachev also pointed out Bitcoin’s strong investment performance in recent years, noting that the cryptocurrency reached a value of $100,000 in December 2024.

He argued that Bitcoin’s high returns make it not only a stable store of value but also an opportunity for significant financial gain.

Given this growth, Tkachev suggested that Russia could benefit from holding Bitcoin in its reserves, similar to the way nations hold gold or foreign currency reserves.

In line with this, companies like MicroStrategy, have already adopted Bitcoin as part of their investment strategy.

MicroStrategy has been consistently purchasing Bitcoin, most recently acquiring 21,550 BTC for $2.1 billion in December.

This brings its total holdings to over 423,000 BTC, further cementing the company’s commitment to Bitcoin as a long-term investment.

Similarly, Hut 8, a Bitcoin mining company, announced plans to raise $500 million through stock sales, with a portion of the proceeds earmarked for additional Bitcoin purchases.

Russian lawmaker Anton Tkachev’s proposal aligns with Russia’s broader strategy to develop alternatives to traditional financial systems.

The Central Bank of Russia is already preparing to launch an experiment to use cryptocurrencies in cross-border payments, aiming to facilitate international trade while bypassing Western sanctions.

This initiative is part of a global trend where countries are exploring the potential of digital currencies to maintain economic stability.

Russia’s interest in Bitcoin as a reserve asset is also in line with broader international developments. In the United States, Senator Cynthia Lummis has introduced the “Bitcoin Act of 2024,” which proposes the creation of a national Bitcoin reserve to strengthen the U.S. dollar and increase the country’s influence in the global cryptocurrency market.

Former U.S. President Donald Trump has also voiced support for a Bitcoin reserve, with some of his campaign promises including the idea of holding a strategic reserve of Bitcoin to further the U.S. economy’s resilience in the digital age.

While Russia’s proposal is still in the early stages, it reflects a growing trend among countries to explore Bitcoin as a strategic asset.

Former Binance CEO Changpeng Zhao has speculated that countries like China could eventually create their own Bitcoin reserves, especially as global economic pressures continue to rise.

He noted that smaller nations might be the first to adopt such a strategy, but larger economies could eventually follow suit.

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