Russia Planning $10B Bitcoin Investment, Insists Kremlin Economist

Russia cryptocurrency

Russian economist, Vladislav Ginko, says Russia is looking to invest $10 billion in Bitcoin as the State Duma has put cryptocurrency legislation high on the agenda for 2019.


Rumored $10 Billion Bitcoin Investment

Ginko, an economist with ties to the Kremlin, says the Russian government will convert some of its USD reserves into Bitcoin, a move that could start as early as February.

Last week, Bitcoinist first reported on the government’s rumored plans to ditch the Dollar as a way of circumventing U.S. sanctions.

Vladislav Ginko

Now, according to The Telegraph, the Kremlin plans to invest as much as $10 billion into Bitcoin, citing Ginko, who added:

[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.

The economist also believes cryptocurrency-related activity now comprises as much as 8 percent of the country’s GDP. What’s more, Ginko expects Russia to also create an intermediary ‘Bitruble,’ which it will trade for bitcoin.

Russian Efforts

“The proposal that I understand is on the desk of the finance minister at the moment is to create some sort of intermediary cryptocurrency,” commented Mati Greenspan, Senior Market Analyst at eToro, in reaction to the news.

We know that Vladimir Putin is a big advocate of blockchain technology. Obviously he doesn’t like the sanctions that have been placed on him, and he’s already said that these types of sanctions are going to lead to de-dollarization. This is more or less the direction the Russian government is going.

Cryptocurrency Regulations High on the Agenda

Greenspan also adds that “the only thing holding the country back is the legal framework to do so.”

Interestingly, fuelling the aforementioned rumors are new reports that Russian lawmakers are looking to prioritize creating a legal foundation for the cryptocurrency market this year.

According to Alexander Zhukov, the First Deputy Chairman of the State Duma, cryptocurrency regulations are a primary focus of legislative work for 2019. An excerpt from a recent article on the official State Duma website reads:

Among the priorities of parliamentary work in the spring session are issues of the development of the digital economy, bills aimed at improving the anti-corruption legislation, as well as amendments that will strengthen the fight against financial scammers.

Apart from being one of the focus points for the Spring Session of the State Duma, matters relating to the cryptocurrency industry will also receive special attention.

According to Zhukov, the Chairman of the State Duma, Vyacheslav Volodin has mandated that special attention is paid to draft laws towards the development of the digital economy.

Russia’s Cryptocurrency Law May Finally Happen in 2019

Despite several efforts, the country’s legislature was unable to pass any cryptocurrency legislation in 2018. Even with the apparent urging of President Vladimir Putin, the State Duma didn’t pass the “On Digital Financial Assets” bill.

With these new declarations from high-ranking members of the Russian Parliament, the country might finally be on the path of obtaining clear-cut regulations for the industry. Speaking during the opening plenary meeting, Volodin urged lawmakers to push beyond “legislative blockages” and focus on passing and enforcing laws.

What impact do you think a $10 billion investment by Russia would have on the price of Bitcoin? Let us know your thoughts in the comments below.


Image courtesy of Duma.gov.ru, Shutterstock, Youtube

The post Russia Planning $10B Bitcoin Investment, Insists Kremlin Economist appeared first on Bitcoinist.com.

Source: Blockchain

Russia Plans to Ditch US Dollar for Bitcoin, Says University Professor

Russia Putin

A Russian university lecturer with ties to the government says the Kremlin will soon begin investing massively in Bitcoin as a way of avoiding new U.S. sanctions, a move that could happen “in a matter of weeks.”


Russia to Buy Some ‘Digital Gold’?

Speaking exclusively to Micky, Vladislav Ginko of the Russian Presidential Academy of National Economy and Public Administration believes new U.S. sanctions will push the Kremlin into diversifying its cash reserves into Bitcoin.

Ginko who has ties with the government going back more than 20 years says the move will happen in a matter of weeks. Ginko has in recent times appeared on various Russian media platforms clamoring for the adoption of Bitcoin as a haven asset.

Commenting on the issue, Ginko said:

US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future).

Cutting Dollar Dependence Amid New U.S. Sanctions

Along with China, Iran, and Venezuela, Russia is exploring ways to reduce its US Dollar dependence. Back in November 2018, Russian President; Vladimir Putin, declared that in the wake of new sanctions, the country had no choice but to cut down on its use of the Dollar in international trade.

At the time, President Putin said:

We have no goal of moving away from the Dollar. It’s the dollar that’s moving away from us. Those making such decisions are not shooting themselves in the foot, but somewhere more delicate, further up the body.

According to Ginko, the Kremlin will, beginning in February 2018, look for ways to diversify its reserves. Ginko has in recent times appeared on various Russian media platforms clamoring for the adoption of Bitcoin as a haven asset.

Russian Efforts

If the Russian government and the elite class invest massively in Bitcoin, the price of the asset could experience a sudden upward surge. Such a situation occurred in 2018 when wealthy Chinese citizens reportedly moved money into BTC in the wake of an accelerated currency devaluation by Beijing.

Meanwhile, the Kremlin has been stocking up on non-digital gold as a shield against economic sanctions. Reports indicate the government is selling U.S. government debt in exchange for the precious metal. By August 2018, Russia had already tripled its gold reserve as it gears up for renewed economic tussles with the U.S.

Such is the extent of Russia’s gold-gobbling that global gold purchasing figures reached a three-year high in November 2018. The Kremlin is also pursuing closer economic ties with China to create a new payment system independent of the Dollar.

Will massive Bitcoin investment by the Kremlin lead to any surge in the price of Bitcoin? Let us know your thoughts in the comments below.


Image courtesy of Shutterstock

The post Russia Plans to Ditch US Dollar for Bitcoin, Says University Professor appeared first on Bitcoinist.com.

Source: Blockchain

Russia Says Venezuela’s Petro Acceptance ‘Not Happening’

Russia Venezuela Petro

Russia has not discounted the idea of using state-issued cryptocurrency Petro in commercial operations with Venezuela.


Russia: No Petro Payments ‘Yet’

Those were the words of deputy finance minister Sergey Storchak speaking to reporters this week, local news outlet RIA Novosti reported December 13.

Petro, which the Venezuelan government hopes to use to shore up its rapidly failing economy and bypass western sanctions, formally launched in October.

President Nicolas Maduro has since artificially raised its exchange rate in the country’s fiat currency, the sovereign bolivar (VES), several times.

High-level talks between Caracas and Moscow are ongoing, but direct integration of Petro by the latter remains off the table.

“Representatives from our tax service and central bank… got acquainted with the cryptocurrency (Venezuela) is currently introducing,” Storchak said.

But no more than that. As for payments, they’re not happening yet.

Sanctioned ‘States’ Ditch Dollars With Crypto

Russia has demonstrated a willingness to help Maduro sidestep punitive sanctions on the Venezuelan economy as part of his efforts to ingratiate Petro with the international community.

Itself based on highly suspect financials, the cryptocurrency came with its own publicity group which hoped to convince exchanges in various countries to accept it for trade.

The scheme appears to have done little to change the lives of citizens, the majority of whom appear to be living in increasingly desperate conditions.

Venezuelan Hyperinflation Makes Bitcoin An Ideal Way To Transact

As Bitcoinist has frequently reported, informal Bitcoin 00 purchasing activity to continues to hit new highs on an almost weekly basis.

A hook-up between Russia and Petro would meanwhile echo similar desires from other states looking to overcome bureaucratic hurdles and economic sanctions.

Unrecognized countries supported by Russia – Abkhazia in Georgia, Transnistria in Moldova and the two ‘People’s Republics’ in Eastern Ukraine – have variously stated plans to use a cryptocurrency to improve their economic buoyancy.

Two of the three informal states currently use the Russian ruble, itself feeling the pinch from sanctions, while Transnistria’s own ruble has no legal status outside its borders.

What do you think about Russia’s potential interaction with Petro? Let us know in the comments below!


Images courtesy of Shutterstock

The post Russia Says Venezuela’s Petro Acceptance ‘Not Happening’ appeared first on Bitcoinist.com.

Source: Blockchain