Putin supports BTC: encryption currency as an alternative solution for forex reserves, BRICS needs to establish a financial system outside the US dollar

Russian President Putin (Vladimir Vladimirovich Putin) stated at the financial summit held at VTB Bank on 12/4 that cryptocurrencies like BTC could be a better alternative as forex reserves, and no one can stop BTC. As Russia's forex reserves are gradually being frozen by Western countries, Russia is actively turning to digital asset reserves.

Why bother accumulating reserves if they will be frozen? Putin talks about Bitcoin as the official election.

Putin questioned the necessity of traditional forex reserves at the financial summit hosted by VTB Bank in December. He said, 'Since reserves can be frozen so easily, why accumulate them?' This directly echoes the tension between Russia and Western countries since the Russia-Ukraine war.

Since the outbreak of the Russia-Ukraine war in 2022, the United States and its allies have frozen about $300 billion of forex reserves of Russia, dealing a blow to the Russian economy. Putin further pointed out that this move has damaged the reputation of the US dollar as the primary reserve asset and revealed that cryptocurrencies including Bitcoin are becoming a new choice. He said, 'Who can resist assets like BTC? No one can.'

Western sanctions drive Russia to embrace Cryptocurrency

The Russian government has been conservative or even hostile towards cryptocurrency in the past, and even proposed a complete ban in 2022. However, under the economic sanctions pressure from Western countries, the Russian government has made a major turnaround in attitude, gradually accepting digital assets as an economic coping solution.

The Russian government not only allows digital currency payments, but also plans to introduce the 'Digital Ruble' in July 2025. Last week, Putin signed a law to establish a legal framework for Cryptocurrency Mining and transaction taxation, with an expected annual revenue of 2 billion US dollars from encryption miners.

Putin Signs Cryptocurrency Mining and Trading Tax Bill

(The Russian government has approved the Cryptocurrency Tax Law, exempting value-added tax, and integrating exchange into securities income)

Call for BRICS to establish a new payment system, opening up new avenues

In addition to Bitcoin, Putin also sees the future development of electronic payment systems. In October of this year, he called on BRICS countries to establish a new payment system to address Russia's exclusion from the Swift system, indicating Russia's commitment to building a financial system outside of the US dollar.

Putin calls for the establishment of a new payment system at the 2024 BRICS summit

This article Putin supports Bitcoin: encryption currency as a forex reserve alternative, BRICS needs to establish a financial system outside the US dollar, first appeared on Chain News ABMedia.