According to a report by Russian news agency, Anton Tkachev, the Deputy Chairman of the Russian State Duma (legislative body), has proposed the establishment of a strategic reserve of Bitcoin to the Russian Finance Minister Anton Siluanov. The reasons for the proposal include geopolitical instability, the vulnerability of traditional currency reserves (including the Renminbi, US dollar, and Euro) to fluctuations, sanctions, and inflation.
Background: After Trump’s victory in the presidential election, the market has had high expectations for Trump’s promised cryptocurrency policies, which has led to Bitcoin surpassing the $100,000 mark. In addition, under Trump’s call to “make Bitcoin the reserve asset of the United States,” various countries’ physical enterprises also plan to or continue to purchase Bitcoin as a company’s reserve asset.
Furthermore, following the precedent of El Salvador adopting Bitcoin as legal tender and a reserve asset, it seems that Russia also intends to include Bitcoin in its asset reserves.
Proposal to establish a strategic reserve of Bitcoin
According to a report by Russian news agency on September 9th, Anton Tkachev, a member of the “New People’s” faction of the Russian State Duma, has submitted a proposal to the Russian Finance Minister Anton Siluanov, suggesting the establishment of a strategic reserve of Bitcoin in Russia.
According to a copy of the document obtained by Russian news agency, the content is as follows:
“Dear Anton Siluanov, I request that you evaluate the feasibility of establishing a strategic reserve of Bitcoin in Russia, similar to the reserves held in traditional currencies. If this initiative is approved, please submit it to the Russian federal government for further implementation.
For sanctioned countries, cryptocurrencies have become the only tool for international trade when access to traditional international payment systems is restricted. The Central Bank of Russia is currently preparing to launch a pilot project for cross-border cryptocurrency settlements.”
Anton Tkachev’s document explains that in the context of geopolitical instability, traditional currency reserves (including the Renminbi, US dollar, and Euro) are vulnerable to fluctuations, sanctions, and inflation, posing a threat to a country’s financial stability. The current global challenges require the adoption of alternative reserve tools that are not dependent on specific countries.
Is digital currency expected to rise in Russia?
On the other hand, according to previous reports, Russian President Vladimir Putin stated during the BRICS Parliamentary Meeting in mid-October that the timing for creating a unified currency for BRICS countries is not yet mature, and economic integration among BRICS countries must reach a high level before implementing a unified currency. At the same time, Putin also suggested that BRICS countries can use digital currencies for investments.
Moreover, Putin expressed his views on Bitcoin and digital payments at the Russia Calling Investment Forum, stating that no one can prohibit Bitcoin:
“Who can prohibit Bitcoin? No one can. Who can prohibit the use of other electronic payment methods? No one can. Because these are all new technologies.”
Given Putin’s previous support for digital currencies, especially Bitcoin, Anton Tkachev’s proposal to include Bitcoin in Russia’s asset reserves may have a chance to be adopted by the Putin government.