Vladimir Putin declared that Bitcoin (BTC), and other digital currencies, are invincible. They have been positioned as essential tools for improving economic stability and decreasing financial inefficiencies.
Putin delivered the remarks at the Investment Forum, held on 4 December in Moscow. He argued that Bitcoin was a better global reserve than the US dollar. He criticized the US government for using the dollar’s dominance to push its political agendas by controlling who can use its currency.
Putin mentioned the $300 billion that was frozen in Russian reserve funds by Western nations in the wake of the Ukraine conflict in 2022. He added that this has prompted many countries to turn to alternatives that are safe from such control — like Bitcoin.
The Russian president:
“Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody. These technologies will develop, one way or another… as everyone seeks to lower costs and improve reliability.”
Sein comments come after the Russian government passed a new bill that officially classified cryptocurrencies as property. The law provides tax relief on digital transactions carried out through electronic payments systems, and it exempts crypto-mining and crypto-sales from VAT.
Strategic Implications
The legal recognition of cryptocurrencies highlights Russia’s commitment to fostering innovation within its financial system. This also shows a deliberate economic strategy as Russia aims to minimize external financial pressures by adopting digital assets.
Crypto played an important role in preventing Western sanctions from being implemented during the conflict that is currently taking place in Ukraine. It allowed people to both send and receive funds despite the difficulties brought about by the war.
Recent discussions at the BRICS Summit highlighted the ability of digital currency to enable cross-border payment and undermine the dominance traditional financial systems. Putin has also called for the establishment of a new financial system.
Putin’s endorsement of Bitcoin and his call for technological adoption contrast with recent US initiatives, including President-elect Donald Trump’s proposed creation of a national Bitcoin reserve.
The incoming US administration’s pro-crypto stance is expected to result in a more friendly regulatory environment for the industry, which will ultimately push other countries to adopt a progressive approach toward the technology.
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