In recent times, the global economic landscape has been witnessing a notable transformation with a growing acceptance of cryptocurrencies, particularly Bitcoin, as a hedge against inflation. This shift became more pronounced on November 5, when pro-crypto candidate Donald Trump won the US presidential election against Kamala Harris, who was known for her crypto-skeptic views. This political change in the US has begun to influence other global economic powers, prompting them to reconsider their stance on cryptocurrencies and explore the potential of establishing Bitcoin reserves.
Russia’s Push for a Bitcoin Reserve
Amidst these global developments, Russia has emerged as a significant player in the crypto arena. Anton Olegovich Tkachev, a deputy of the State Duma of the Federal Assembly of the Russian Federation, has recently proposed the creation of a strategic Bitcoin reserve in Russia. This proposal was submitted to Russian Finance Minister Anton Siluanov shortly after Russian President Vladimir Putin publicly declared his support for Bitcoin, stating that “BTC can never be banned.”
The proposal to establish a Bitcoin reserve in Russia highlights the vulnerabilities of traditional currency reserves like the dollar, yuan, and euro, particularly in the face of inflation and international sanctions. Bitcoin is presented as a robust and independent alternative that could potentially safeguard Russia’s economic interests in turbulent times.
Russia’s Crypto Regulations and Restrictions
Historically, Russia has maintained a cautious stance towards cryptocurrencies. However, the recent political shifts in the US appear to have influenced Moscow’s outlook on the crypto sector. The country has introduced progressive changes in its crypto regulatory framework, exempting the sector from value-added tax, although profits from crypto-related activities are still subject to a 15% personal income tax. Additionally, with some exceptions, crypto mining has now been legalized in Russia, reflecting the country’s evolving approach to the digital currency landscape.
Global Trends in Bitcoin Reserves
On the global stage, there are speculations that the United States might establish a Bitcoin reserve once Donald Trump assumes office in January 2025. Notably, the state of Pennsylvania is considering allocating at least 10% of its state funds to Bitcoin as a proactive measure against inflation. This potential move underscores the growing recognition of Bitcoin as a valuable asset in the fight against economic instability.
Currently, the price of Bitcoin stands at $97,198.57, marking a substantial 23% increase over the past 30 days. The cryptocurrency recently achieved the significant milestone of reaching $100,000. For countries that invested in Bitcoin a year ago, the value of their investments has surged by an impressive 121.1%.
In conclusion, the global momentum towards establishing Bitcoin reserves is gaining traction. As Russia and other nations take significant steps in this direction, the world is witnessing a paradigm shift in how economic powers perceive and utilize digital currencies to safeguard their financial future.
