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Coinpaprika 2024-12-10 07:45:40

Russia Considers Bitcoin Reserve for Stability

Russian State Duma Deputy Anton Tkachev has proposed creating a strategic Bitcoin reserve to boost the country’s financial stability. Tkachev, a member of the New People party, submitted his suggestion to Finance Minister Anton Siluanov, highlighting Bitcoin's potential as an independent asset free from international sanctions and inflation risks associated with traditional currencies like the dollar, euro, and yuan. Tkachev's proposal comes at a time when Russia appears to be softening its stance on cryptocurrency regulation. President Vladimir Putin recently stated that Bitcoin cannot be banned and will continue to grow, providing a confidence boost that helped Bitcoin surpass the $100,000 milestone after lingering near $95,000 for weeks. On the regulatory front, Russia has made significant changes. Cryptocurrency transactions are now exempt from VAT, with profits from crypto activities taxed at 15%, similar to securities. Earlier this year, Russia also legalized Bitcoin mining, though restrictions remain in specific regions. Mining is prohibited in occupied Ukrainian territories, such as Donetsk and Lugansk, and seasonal restrictions are in place in Siberia during winter months to manage electricity demand. The idea of a national Bitcoin reserve is not unique to Russia. In the US, Pennsylvania recently proposed allocating 10% of state funds to Bitcoin as an inflation hedge and investment strategy. There is growing optimism that Donald Trump, after his inauguration in January, might consider establishing a national Bitcoin reserve. Investment firms like VanEck have also advocated for Bitcoin as a reserve asset. El Salvador, a trailblazer in this field, introduced its Bitcoin reserve in 2021. The country now holds over $554 million worth of BTC, with unrealized profits nearing 120% . Russia’s interest in following this path reflects a global trend of increasing adoption of Bitcoin as a strategic financial asset. Whether Russia will move forward with Tkachev's proposal remains to be seen, but the suggestion aligns with the country’s recent efforts to optimize its crypto regulations and explore alternatives to traditional financial systems .

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