The political scenario in the United States took a major turn on November 5 when pro-crypto candidate Donald Trump defeated Kamala Harris, a crypto-skeptic, in the presidential election. This shift has influenced global economic powers, with many countries now exploring the idea of Bitcoin reserves to combat inflation. The United States is actively discussing this strategy, and Russia is now considering a similar path.
Let’s take a closer look.
Anton Olegovich Tkachev, a deputy in the State Duma of the Federal Assembly of the Russian Federation’s 8th convocation, recently proposed the creation of a Bitcoin reserve in Russia. Tkachev’s proposal has been officially submitted to Russian Finance Minister Anton Siluanov.
This proposal comes just a week after Russian President Vladimir Putin expressed his support for Bitcoin, stating that “BTC can never be banned.” This signals a significant policy shift in Russia’s approach to Bitcoin and cryptocurrencies.
Tkachev’s proposal points to the risks faced by traditional reserve currencies like the dollar, yuan, and euro. These currencies are highly vulnerable to inflation and international sanctions, creating uncertainty for their holders. Bitcoin, on the other hand, is being presented as an independent and reliable financial hedge.
This proposal indicates that Russia is rethinking its previous skepticism toward cryptocurrencies, focusing instead on Bitcoin’s potential to strengthen its financial stability.
Although Russia was previously cautious about cryptocurrencies, it has recently made strides toward more progressive regulation. For example, the government has exempted the crypto sector from value-added tax (VAT), although profits from crypto activities still face a 15% personal income tax.
Additionally, Russia has legalized crypto mining with only minor exceptions, suggesting a growing willingness to engage with the crypto economy.
While Russia weighs its options, the United States is rumored to be working on its own Bitcoin reserve strategy. Reports suggest that the reserve could take shape as soon as Trump resumes office in January 2025.
Pennsylvania is also considering allocating at least 10% of its state funds to BTC as a hedge against economic instability and inflation.
Bitcoin is currently trading at $97,198.57, having grown by 23% over the past 30 days. The cryptocurrency recently reached the symbolic milestone of $100K, reflecting growing investor confidence and market optimism.
The idea of nations creating Bitcoin reserves is no longer just a speculative move. Countries that have already invested in Bitcoin have seen impressive returns. For example, a nation that started investing in Bitcoin last year has seen its holdings increase by 121.1% in value.
With nations diving into the Bitcoin reserve strategy, crypto is increasingly being seen as a hedge!
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