Russia is considering establishing a strategic Bitcoin (CRYPTO: BTC) reserve amid growing tensions with Western financial systems and following President-elect Donald Trump‘s pro-cryptocurrency stance in the United States.
What Happened: State Duma deputy Anton Tkachev proposed creating a Bitcoin reserve to Russian Finance Minister Anton Siluanov on Tuesday, according to RIA Novosti, a Russian state-owned news agency. The proposal comes as Bitcoin trades near $100,000, marking a significant growth in cryptocurrency adoption by major nations.
“In conditions of limited access to traditional international payment systems for countries under sanctions, cryptocurrencies are becoming virtually the only instrument for international trade,” Tkachev stated in his appeal to Siluanov.
The move aligns with Trump’s recent pledge to establish a national Bitcoin reserve in the U.S. Trump has promised to halt federal sales of seized Bitcoin, worth approximately $20 billion, to build what he calls a “permanent national asset to benefit all Americans.”
Why It Matters: Meanwhile, Sen. Cynthia Lummis (R-WY) has introduced legislation proposing that the U.S. acquire up to 1 million Bitcoins over two decades, suggesting it could be funded through gold reserve revaluation rather than taxpayer dollars.
However, former Treasury Secretary Larry Summers has criticized such initiatives. “The idea that we should have some kind of national bitcoin reserve is crazy,” Summers said, questioning the logic behind government accumulation of cryptocurrency.
The developments come as BRICS nations face potential 100% tariffs from the incoming Trump administration if they pursue alternatives to the U.S. dollar.
Iran, a BRICS member, has already announced plans to regulate cryptocurrency to “nullify sanctions,” with Iranian investors holding an estimated $30-50 billion in crypto assets.
Meanwhile, Michael Saylor, executive chairman of MicroStrategy Inc. (NASDAQ:MSTR), has likened a national Bitcoin reserve to the Louisiana Purchase, calling it “manifest destiny for the United States.”
Price Action: Bitcoin is currently trading at $97,053.37, marking a decline of 0.45% in the last 24 hours. However, year-to-date, the cryptocurrency has surged 119.56%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
