According to a Russian economist with ties to the Kremlin, the superpower is preparing a massive $10 billion USD investment in Bitcoin to replace its US dollar reserves. Russia’s Bitcoin investment is a step to minimize US sanctions on the country.
Russia’s Bitcoin Investment
Vladislav Ginko, an economist at the Russian Presidential Academy of National Economy and Public Administration, said the Bitcoin investment was a step taken to avoid US sanctions on Russia.
Ginko believes that Russia’s decision to hold Bitcoin as a reserve currency instead of the US dollar is a move being made to “protect [Russia’s] national interests” in light of a possible interruption of “US nominated payments flows for Russian oil and gas.”
Russia’s Bitcoin investment is expected to begin in February. Mr. Ginko furthered:
“[The] Russian government is about to make a step to start diversifying financial reserves into Bitcoin since Russia [is] forced by US sanctions to dump US Treasury bonds and [take] back US dollars […]These sanctions and the will to adopt modern financial technologies lead Russia to the way of investing its reserves into Bitcoin.”
US Sanctions Behind the Bitcoin Investment?
US sanctions have hit the Russian rouble hard. Now the superpower wants to replace some of its US dollar reserves with the world’s largest cryptocurrency by market cap.
Recent US sanctions on Russia came after the poisoning of former Russian military officer Sergei Skripal in London. The former Russian military officer was a double agent for the UK’s Intelligent Services. Two active Russian military intelligent officers attacked Sergei and his daughter Yulia, with a nerve agent.
Russia and Crypto
Cryptocurrencies are very popular in Russia and even receive approval by the country’s President Vladimir Putin. According to Ginko, the cryptocurrency industry accounts for 8% of Russia’s GDP.
The Bitcoin investment is not the only sign of ‘de-dollarisation’ by the country. It has recently bolstered its supply of the euro, Chinese renminbi, and Japanese yen.
Featured Image: Depositphotos © KostyaKlimenko
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