The Russian Congress proposes to “include Bitcoin as a strategic reserve asset” to counter international economic sanctions

After Trump's victory in the presidential election, the market's expectations for Trump's previous promises on encryption policies have increased significantly, which has in turn driven Bitcoin to break through the $10,000 mark. Furthermore, under Trump's promise to "treat Bitcoin as a reserve asset of the United States," real-world companies are also planning or continuing to purchase Bitcoin as a reserve asset for their companies. In addition, following the precedent set by El Salvador in making Bitcoin a legal tender and reserve, Russia also seems to be interested in including Bitcoin in its asset reserves. Proposal to Establish a Bitcoin Strategic Reserve According to a report by RIA Novosti yesterday (9th), Anton Tkachev, a member of the "New People" faction of the Russian State Duma, has appealed to Russian Finance Minister Anton Siluanov through a document, suggesting that Russia establish a Bitcoin strategic reserve. The content of the copy of the document obtained by RIA Novosti is as follows: "Dear Anton Siluanov, I request that you evaluate the feasibility of establishing a Bitcoin strategic reserve in Russia, similar to the country's reserves in traditional currencies. If this initiative is approved, please submit it to the Government of the Russian Federation for further implementation. For sanctioned countries, cryptocurrencies have actually become the only tool for international trade, as they are restricted from accessing the traditional international payment system. The Central Bank of Russia is currently preparing to launch a pilot project for cross-border cryptocurrency settlement." Anton Tkachev's document explains that in the context of geopolitical instability, traditional currency reserves (including the renminbi, US dollar, and euro) are vulnerable to volatility, sanctions, and inflation, which poses a threat to the country's financial stability. The current global challenges require the adoption of not only a new payment system, but also alternative reserve tools that are not dependent on a specific country. Will Digital Currencies Rise in Russia? On the other hand, according to a previous report by Block Tempo, at the BRICS summit in mid-October, Russian President (Vladimir Putin) stated that the current timing for creating a unified BRICS currency is still not mature enough, and that the economic integration of the BRICS countries must reach a high level before the unified currency can be launched. At the same time, Putin also suggested that the BRICS countries can use digital currencies in their investments. Furthermore, at the Russia Calling investment forum, Putin also expressed his views on Bitcoin and digital payments, stating that no one can ban Bitcoin: "Who can ban Bitcoin? No one can. Who can ban the use of other electronic payment methods? No one can either. Because these are new technologies." Given Putin's previous supportive attitude towards digital currencies, especially Bitcoin, Anton Tkachev's proposal to include Bitcoin in Russia's asset reserves may have the potential to be adopted by the Putin government.