Top Russian Legislator Dismisses Possibility of Establishing a National Bitcoin Reserve

The leading architect of cryptocurrency legislation in Russia has dismissed the possibility of establishing a national Bitcoin reserve.

In a discussion with the Parliamentary Gazette, Anatoly Aksakov, who chairs the State Duma’s Committee on Financial Markets, stated that Bitcoin would only be incorporated into the budget “in 100 years’ time.”

National Bitcoin Reserve? Maybe in 100 Years, Says Lawmaker

Aksakov indicated that the State Duma views “cryptocurrency as incompatible” with the nation’s reserves, which are still grounded in gold and foreign currency.

Anatoly Aksakov, the Chairman of the Russian State Duma’s Committee on the Financial Markets, speaking during an interview this week. (Source: Parliamentary Gazette/Screenshot)

Not all officials in Moscow seem to share Aksakov’s perspective, as the interviewer from the gazette pointed out that “some” Russian “legislators” have proposed establishing a “stash of” cryptocurrency in “the state Treasury.”

Nevertheless, the lawmaker expressed his disapproval of these suggestions, asserting that Moscow must proceed with “caution” regarding cryptocurrency adoption.

“There are private individuals behind Bitcoin. And it is still unclear what procedures are used to issue it. The price of Bitcoin fluctuates greatly. Now it has really grown significantly, primarily due to [Donald Trump’s election in the United States]. I would be cautious about this. I do not consider it necessary to create any stashes, especially in the Russian state budget.”

Anatoly Aksakov, Chairman of the Russian State Duma’s Committee on the Financial Markets

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Regardless, the adoption of cryptocurrency in Russia is progressing steadily. While Moscow once contemplated implementing a crackdown similar to that of China, the Kremlin has recently shifted its focus toward Bitcoin and other cryptocurrencies.

Sanctions led by the US, UK, and EU are partly responsible for this shift. The government has initiated a sandbox that utilizes cryptocurrency as a tool for cross-border payments in international trade.

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Mining Industry Growing

Another factor contributing to this trend is the rapid expansion of the Russian Bitcoin mining sector. In his interview, Aksakov reiterated claims from the industry and government that cryptocurrency mining could potentially generate approximately $555 million annually in tax revenue for the Treasury. Aksakov stated:

“We have legalized cryptocurrencies so that they can be used for international settlements. And I know that many companies are already doing this. If it lets firms solve economic problems […] then let them use [crypto].”

Aksakov

Crypto Credit Cards Are Interesting, Aksakov Explains

The lawmaker also expressed interest in “crypto credit cards,” which he noted he had observed in use in Asian countries.

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He mentioned being “interested in the idea” of introducing cards that would allow users to make payments in cryptocurrency while merchants could receive rubles instead of coins.

In various countries, these cards are managed by cryptocurrency exchanges, which are not yet regulated in Russia. The lawmaker remarked:

“I have even suggested implementing [crypto credit cards] in the framework of the sandbox. [But] the Central Bank regulates everything in that space. […] It is quite possible that a system like this would work. As such, our citizens will be able to use payment cards that are linked to a regular bank account, and to a distributed registry where cryptocurrencies are circulated.”

Aksakov

However, he quickly noted that “currently, we are far from” integrating BTC into the Russian economic framework.

“As things stand, I do not see – even in the distant future – a way for Bitcoin to become a popular currency that circulates domestically. Let me remind you that it is illegal to purchase goods and services in Russia using cryptocurrencies.”

Aksakov

Sanctions Sticking-points

With tensions between the US, EU, UK, and Russia escalating, Russian policymakers are actively investigating the potential applications of cryptocurrency for evading sanctions.

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Aksakov concluded:

“Cryptocurrencies use a distributed registry, not the banking system. This also has certain advantages. It removes the risks associated with the supervision and control of the banking sector by countries unfriendly to Russia.”

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