In a notable shift within the global economic landscape, the US political scene has recently tilted in favor of cryptocurrencies. This change came to light on November 5, when pro-crypto advocate Donald Trump triumphed over Kamala Harris, who had been a proponent of a crypto-skeptic regime, in the presidential election. This political transition has sparked a wave of transformation in how major global economies perceive the crypto sector, particularly the innovative concept of establishing a Bitcoin reserve as a strategy to combat inflation.
As the United States actively deliberates on the reserve strategy, a proposal has been put forward in Russia. Anton Olegovich Tkachev, a deputy of the State Duma of the Federal Assembly of the Russian Federation of the 8th convocation, has formally submitted a proposal to Russian Finance Minister Anton Siluanov. This proposal advocates for the creation of a strategic Bitcoin reserve in Russia.
Russia’s Push for a Bitcoin Reserve
Interestingly, the proposal for a BTC reserve in Russia has emerged just a week after Russian President Vladimir Putin openly voiced his support for Bitcoin, asserting that “BTC can never be banned.” The proposal highlights the precarious nature of traditional currency reserves such as the dollar, yuan, and euro, which remain susceptible to inevitable economic factors like inflation and international sanctions. Bitcoin is being presented as a viable and independent alternative.
Russia’s Crypto Regulations and Restrictions
Historically, Russia has maintained a cautious stance towards cryptocurrencies. However, recent developments in the US may have influenced Moscow’s reconsideration of its approach to the cryptocurrency sector. Notably, Russia has introduced progressive changes to its crypto regulatory framework, including the exemption of the sector from value-added tax. Despite this, profits generated from crypto activities are still subject to a personal income tax rate of 15%. Interestingly, with a few exceptions, crypto mining is now legally recognized in Russia.
Global Trends in Bitcoin Reserves
There are speculations that the United States may establish a Bitcoin reserve once Trump officially takes office in January 2025. The state of Pennsylvania is reportedly considering allocating at least 10% of its state funds to Bitcoin as a safeguard against inflation.
The price of Bitcoin is currently at $97,198.57, marking a remarkable growth of 23% over the past 30 days. It recently achieved the significant milestone of surpassing $100K. Consequently, a country that invested in Bitcoin around the same time last year would have seen the value of its investment surge by over 121.1% by now.
The global momentum towards establishing Bitcoin reserves is accelerating, with Russia and other nations taking pivotal steps in this direction. The rise of Bitcoin reserves signifies a transformative phase in international economic strategies, as countries increasingly recognize the potential of cryptocurrencies to offer stability and growth in an ever-evolving financial landscape.
