Putin says Bitcoin is inevitable, endorses BTC over US dollar as global reserve currency
Russian President Vladimir Putin said Bitcoin (BTC) and digital currencies are unstoppable, positioning them as key tools for reducing financial inefficiencies and enhancing economic stability.
Putin made the statements at the Investment Forum in Moscow on Dec. 4, where he argued in favor of Bitcoin as a global reserve asset over the US dollar. He criticized the US government for using the dollars dominance to push its political agendas by controlling who can use its currency.
Putin pointed to the $300 billion in Russian reserves frozen by Western nations after the Ukraine war began in 2022. He added that this has prompted many countries to turn to alternatives that are safe from such control like Bitcoin.
According to the Russian President:
Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody. These technologies will develop, one way or another as everyone seeks to lower costs and improve reliability.
His comments follow the enactment of a new law in Russia that officially classifies cryptocurrencies as property. The legislation provides tax relief for digital transactions conducted through electronic payment systems and exempts crypto mining and sales from value-added tax (VAT).
Strategic Implications
The legal recognition of cryptocurrencies highlights Russias commitment to fostering innovation within its financial system. It also reflects a calculated approach to economic strategy, as Russia seeks to mitigate external financial pressures through the adoption of digital assets.
Crypto has played a pivotal role in countering Western sanctions during the ongoing Ukraine conflict, allowing people on both sides to send and receive money amid the challenges brought on by war.
Furthermore, recent discussions at the BRICS summit highlighted the potential of digital currencies to facilitate cross-border payments and challenge the dominance of traditional financial systems. Additionally, Putin recently called to establish
Putins endorsement of Bitcoin and his call for technological adoption contrast with recent US initiatives, including President-elect Donald Trumps proposed creation of a national Bitcoin reserve.
The incoming US administrations pro-crypto stance is expected to result in a more friendly regulatory environment for the industry, which will ultimately push other countries to adopt a progressive approach toward the technology.
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Text source: CryptoSlate
