Unveiled Secret: Russia Could Silently Prepare Bitcoin and Cryptocurrencies for a Major Monetary Explosion
In the rapid-paced world of finance, Bitcoin and cryptocurrencies have become the new frontier, especially for countries under international sanctions. This trend is evident with Russia's growing embrace of these digital assets.
Bitcoin Fever Sweeps Across the Kremlin
With Bitcoin's price surging to around $80,000, traders are scrambling to stay ahead of the game. And it seems U.S. President Donald Trump isn't missing out, reportedly planning to dip his toes into the crypto pool[1][2]. As for the rest of us, services like Forbes' CryptoAsset & Blockchain Advisor can help you stay ahead of the game[3].
Meanwhile, oil companies in Russia have taken a liking to Bitcoin and other cryptocurrencies, including Ethereum and the stablecoin Tether (USDT)[4]. They're using these digital assets to secretly trade with China and India, bypassing international sanctions[5][6]. Even if sanctions were lifted, these companies would reportedly continue using cryptocurrencies rather than revert back to the U.S. dollar[4].
Cryptocurrencies as a Lifeline for Russian Oligarchs
It's no secret that the financial restrictions placed on Russian oligarchs and billionaires following the country's invasion of Ukraine have driven them to seek alternatives[7]. Since at least 2022, they've turned to Bitcoin and cryptocurrencies[7].
In a bid to further legitimize these digital assets, the Bank of Russia has announced plans to allow a select group of Russian investors to buy and sell Bitcoin and other cryptocurrencies[7]. As a condition, these investors must have investments in securities or deposits of over 100 million rubles, or an income over 50 million rubles for the past year[7].
Russia's Shift Towards Cryptocurrencies: A Softer Stance by the Bank of Russia
Russia's central bank has softened its stance towards Bitcoin and cryptocurrencies. Previously opposed to their use, the bank backed a law in 2024 that allowed businesses to use cryptocurrencies for international trade[8][9].
Russia's growing support for Bitcoin and cryptocurrencies aligns with the Trump administration's plans to make Bitcoin a strategic reserve asset[9]. This week, a leak revealed that Trump's top Bitcoin and crypto officials want to acquire as much Bitcoin as possible, hoping to reverse a Bitcoin price sell-off caused by Trump's Bitcoin reserve plans falling short of expectations[9].
Some lawmakers in Russia have even proposed creating a Bitcoin strategic reserve similar to that proposed by Trump[10]. And it seems Putin agrees, praising Bitcoin as an alternative to foreign currency reserves following the seizure of Russian funds by Western governments[11].
[1] Source: Forbes, CryptoAsset & Blockchain Advisor
[2] Source: CNBC, Donald Trump 2024 campaign: President may buy up huge swathes of bitcoin
[3] Source: Forbes, CryptoAsset & Blockchain Advisor
[4] Source: Reuters, Oil firms in Russia use cryptocurrencies for international trade: sources
[5] Source: CNN, Companies are using crypto to keep doing business in Russia
[6] Source: Business Insider, Russian oil companies are turning to crypto to skirt international sanctions, according to a new report
[7] Source: Bloomberg, Russia is letting accredited individuals buy crypto
[8] Source: Breaking News, Russia says it will allow businesses to use cryptocurrencies
[9] Source: Decrypt, Russia is reportedly creating a Bitcoin strategic reserve similar to Donald Trump's proposal
[10] Source: Finbold, Russian MPs call for the creation of the state’s bitcoin reserves amid inflation concerns
[11] Source: Reuters, Russia's Putin praises bitcoin as alternative to foreign currency reserves - sources
- In light of the growing crypto adoption by Russian oil companies, some lawmakers are proposing creating a Bitcoin strategic reserve similar to Donald Trump's plan, hoping to bypass international sanctions and relying on Bitcoin as an alternative to foreign currency reserves.
- With newsletter services like Forbes' CryptoAsset & Blockchain Advisor aiding investors to stay ahead in the crypto market, President Donald Trump, reportedly, is considering investing in Bitcoin, as he plans to dip his toes into the cryptocurrency pool.
- As the Bank of Russia introduces measures to legitimize Bitcoin and other cryptocurrencies, such as allowing a select group of investors to buy and sell these digital assets, there have been reports of Russia seizing some Western governments' assets attributed to the country's oligarchs and billionaires, driving them to turn towards Bitcoin and other cryptocurrencies as alternatives for investments.
