Russia Rules Out Creating a Bitcoin Reserve, for Now: Finance Minister Anton Siluanov

Minister Siluanov disclosed this while speaking during a lecture to students at the Financial University in Moscow.

Russia’s Finance Minister has disclosed the country’s openness towards establishing a strategic Bitcoin (BTC) reserve. However, now is not the right time due to Bitcoin’s inherent volatility risk, the Minister said.

Minister Siluanov disclosed this during a lecture to students at the Financial University in Moscow on Friday. According to local news media, Siluanov admitted that in the future, Russia could consider creating a Bitcoin reserve.

He acknowledged the huge profits that crypto investments offer. Individuals who invested in Bitcoin at the beginning of the year would have doubled or tripled their investments during rising prices, he explained.

However, the Finance Minister highlighted the state’s reluctance to expose its reserves to the reverse risk associated with crypto. “And it is better to earn less, but keep, you know, as they say, your powder dry,” Siluanov said.

He went on to say that cryptocurrencies are less predictable now than other popularly accepted assets. As a result, establishing a state strategic Bitcoin reserve is not justifiable at present.

Siluanov did not completely dismiss the concept of a strategic crypto reserve, suggesting that it could be reviewed in the future.

“It is necessary to see what will happen in five to ten years,” Siluanov noted.

While Siluanov has ruled out a crypto reserve in the near future, Russia has embraced Bitcoin for cross-border payments. According to a CNF report, Russia has adopted Bitcoin to navigate international sanctions. This dual strategy demonstrates the government’s deliberate use of Bitcoin as a medium of trade rather than a store of value.

Russia’s hesitation to adopt Bitcoin as a reserve asset highlights broader concerns among global powers. For instance, Japan has also disregarded the concept of a Bitcoin reserve, citing liquidity concerns and unpredictable market behavior.

The increasing discussions surrounding the creation of a national Bitcoin reserve follow Donald Trump’s victory as US President. During his election campaign, the president-elect repeatedly pledged to establish a Bitcoin strategic reserve.

A bill on the Bitcoin Act on the strategic crypto reserve has already been prepared in the US. In a recent CNF update, Asset investment manager VanEck said the US could reduce its national debt by establishing a Bitcoin reserve.

VanEck’s analysts predicted that Bitcoin’s valuation could reach $42.3 million per coin by 2049. They claim this surge would allow the US to offset $42 trillion in liabilities.

In another CNF report, MicroStrategy’s Chairman Michael Saylor said a Bitcoin reserve could create “$16 to $81 trillion in wealth for the US Treasury.

Other market experts suggest that widespread adoption by major economies, particularly the US, could help stabilize Bitcoin’s price and potentially eliminate its cyclical volatility. For now, the idea of Bitcoin serving as a national reserve is more idealistic than practical.

As of this writing, BTC is trading at $96,819, up 1.37% in the last 24 hours.