Despite the growing global interest in cryptocurrency reserves, Russia has firmly closed the door on Bitcoin for its National Wealth Fund. Deputy Finance Minister Vladimir Kolychev made it crystal clear—no Bitcoin for now. Period. The fund’s sticking with “safer” options like gold and yuan, allowing up to 60% in Chinese currency and 40% in gold. Boring, but predictable.
Why the cold shoulder to crypto? Volatility, for one. Bitcoin’s wild price swings make government officials nervous. Can’t blame them. The National Wealth Fund needs assets it can liquidate quickly without massive losses. Not exactly Bitcoin’s strong suit these days.
Turns out nations want reserves they can sell without tanking. Bitcoin’s rollercoaster ride doesn’t exactly scream “stable government asset.”
Russia’s approach to crypto has been cautious at best. They legalized Bitcoin as an asset last November, slapped a 13-15% personal income tax on transactions, but banned using it for payments back in 2022. Talk about mixed signals.
Meanwhile, Russians themselves aren’t shy about Bitcoin—a whopping 69% of their exchange holdings are in the cryptocurrency. It’s become a handy tool for dodging sanctions in international trade. The government knows this but keeps a tight leash on domestic use.
The door isn’t completely shut, though. Once the National Wealth Fund grows beyond 7-10% of GDP, Russia might consider “less liquid assets.” That’s bureaucrat-speak for “maybe Bitcoin someday.” Don’t hold your breath.
This stance creates a fascinating contrast with the U.S., where the Trump administration is pushing for strategic cryptocurrency holdings. Investors looking to follow this trend might consider starting with market capitalization analysis before diving into the over 6,000 available cryptocurrencies. America’s jumping in while Russia watches from the sidelines. Smart caution or missed opportunity? Time will tell.
Russia’s decision matters globally. Other countries are watching, weighing whether Bitcoin deserves a place in national reserves. It’s a high-stakes game of economic chess.
For now, Russia’s playing it safe. Traditional assets for traditional minds. But in the world of geopolitics and finance, today’s firm “no” can quickly become tomorrow’s “well, actually…”
