Russian Bitcoin Reserve Proposed To Counter Sanctions Risk

Anton Tkachev, a member of the Russian State Duma, has proposed the creation of a Russian Bitcoin (BTC) reserve to strengthen local financial stability amidst ongoing international sanctions.

Mitigating Risks

The proposal, addressed to Finance Minister Anton Siluanov, suggests that digital currencies could help mitigate risks associated with traditional reserve assets. In his letter, Tkachev highlighted that assets like the U.S. dollar, euro, and yuan are increasingly exposed to inflation, volatility, and sanctions. He pointed out that Bitcoin, being a decentralized digital currency, is not linked to any particular nation&39s financial system, allowing it to potentially withstand geopolitical pressures.

Tkachev called for an evaluation by the finance ministry to determine the feasibility of establishing a Russian Bitcoin reserve, with the results to be presented for government approval. Meanwhile, the Central Bank of Russia is continuing to explore the use of cryptocurrencies in cross-border transactions, especially as traditional financial systems become less accessible to sanctioned countries.

Global Traction

The proposal also referenced the recent strong performance of Bitcoin, including its $100,000 valuation in December 2024, presenting it not only as a means to safeguard financial stability but also as a potentially profitable investment. Tkachev emphasized the need for policy changes and coordination between agencies to make the plan successful, which could inspire other sanctioned nations to consider similar strategies.

The idea of using Bitcoin as a reserve asset is gaining traction globally. In the U.S., Senator Cynthia Lummis has introduced the Bitcoin Act of 2024, pushing for a national Bitcoin reserve, while former President Donald Trump has expressed support for holding Bitcoin to enhance overall economic resilience.