Russia Dismisses Proposal for Bitcoin Reserves

Russia has no immediate plans to store budget reserves in the leading cryptocurrency. This was stated by Anatoly Aksakov, head of the State Duma Committee on Financial Markets, in an interview with Parliamentary Newspaper.

He attributed this stance to the asset’s high volatility and technical characteristics.

“Bitcoin is backed by private individuals, and it is still unclear how it is issued. The exchange rate of bitcoin as a private currency fluctuates significantly. I would approach this instrument with caution, so I do not see the need to create any reserves, especially in our budget,” the official said.

He believes that Russia is far from incorporating digital gold into its budgetary process.

“We are far from that point. I do not see even in the distant future that bitcoin could become a demanded currency circulating within our country,” Aksakov added.

According to him, the state is currently focused on international settlements in crypto assets. There is consideration of issuing a cryptocurrency card linked to the national currency under an experimental regime.

As of September 1, a law came into effect in Russia, allowing foreign trade settlements and cryptocurrency trading under experimental legal regimes.

The central bank intends to conduct the first cross-border payments by the end of 2024.

The Russian Ministry of Finance has also acknowledged the advantages of cryptocurrencies as a means of settlement.

On November 26, the State Duma legalized taxes on cryptocurrency operations. The document was signed by President Vladimir Putin.