Deputy Speaker of the Russian State Duma proposes to establish a strategic BTC reserve to counter sanctions

According to Russian state news agency TASS, Anton Tkachev, Deputy Chairman of the State Duma of Russia, has proposed the establishment of a strategic BTC reserve to the Minister of Finance Anton Siluanov, aiming to enhance the country's financial security and promote innovation in cryptocurrency. This initiative is part of a broader strategy by the Russian government to utilize digital assets as an alternative to the TradFi system, particularly in the context of current Western sanctions.

In recent years, Russia has made significant progress in incorporating cryptocurrencies into its financial framework. President Putin openly supports the use of BTC and other digital currencies as potential global reserve assets, criticizing the US dollar as a tool of American political interests. Putin claims that no one can ban BTC and emphasizes that these technologies will continue to advance as countries seek to reduce costs and improve reliability.

Russia has implemented legislation recognizing cryptocurrencies as property and providing tax benefits for encryption transactions. The country is also delving into the field of non-fungible tokens (NFTs) and drafting a law aimed at protecting NFT owners and regulating them as intellectual property.

In addition, in response to increasing financial pressure from Western sanctions, Russia has legalized Cryptocurrency Mining and allowed the use of digital currency for international payments. This new legislation aims to mitigate the impact of sanctions and facilitate international trade through digital currencies, with the Central Bank of Russia playing a key role in regulating these transactions.

Although the proposal by Deputy Chairman Tarkachev specifically focuses on establishing a strategic BTC reserve, it reflects Russia's efforts to develop alternative financial mechanisms to reduce its reliance on the US dollar and enhance financial security through digital innovation. This initiative also highlights the vulnerability of traditional forex reserves (including the renminbi, dollar, and euro) to geopolitical influences and the demand for alternative reserve tools.

Tkachev explained in the proposal that establishing a strategic BTC reserve can enhance Russia's financial stability, pointing out that traditional currency reserves such as the US dollar, euro, and renminbi are affected by Inflation and sanctions, so there is a need for a new alternative solution independent of any single country. 'In the limited opportunity to use traditional international payment systems in sanctioned countries, Cryptocurrency is actually becoming the only tool for international trade.'

The Central Bank of Russia is preparing to launch an experiment involving cross-border payments with Crypto Assets, highlighting the increasing importance of encryption assets as a viable tool for international trade. The proposal from Deputy Chair TKachev suggests that Bitcoin may significantly appreciate by 2025, with some analysts predicting a price range of $100,000 to $500,000 driven by factors such as limited BTC supply and increased institutional adoption.

If this measure is implemented, it may set a precedent for other sanctioned countries to consider using encryption assets as a means of maintaining financial stability. Executing this proposal will require major policy changes and coordination among government institutions such as central banks and financial regulatory authorities. The initiative by Deputy Speaker Tarkachev represents an important development in incorporating Crypto Assets into Russia's financial strategy, aiming to provide a more stable and secure financial framework amidst global economic uncertainty.

"The Deputy Speaker of the Russian State Duma proposes to create a strategic BTC reserve to counter sanctions" The article was first published in Blockers.