Russia’s most senior crypto legislation architect has ruled out the creation of a national Bitcoin reserve.
In an interview with the country’s Parliamentary Gazette, Anatoly Aksakov, the Chairman of the State Duma’s Committee on the Financial Markets, said that Bitcoin would only be used in the budget “in 100 years’ time.”
National Bitcoin Reserve? Maybe in 100 Years, Says Lawmaker
Aksakov said the State Duma believes that “cryptocurrency is incompatible” with the country’s reserves, which remain based on gold and foreign currency.
Anatoly Aksakov, the Chairman of the Russian State Duma’s Committee on the Financial Markets, speaking during an interview this week. (Source: Parliamentary Gazette/Screenshot)
Not everyone in Moscow appears to agree with Aksakov, as the gazette’s interviewer noted that “some” Russian “legislators” have suggested creating a “stash of” crypto in “the state Treasury.”
However, the lawmaker voiced his disdain for these proposals, claiming that Moscow needed to exercise “caution” with crypto adoption.
“There are private individuals behind Bitcoin. And it is still unclear what procedures are used to issue it. The price of Bitcoin fluctuates greatly. Now it has really grown significantly, primarily due to [Donald Trump’s election in the United States]. I would be cautious about this. I do not consider it necessary to create any stashes, especially in the Russian state budget.”
Anatoly Aksakov, Chairman of the Russian State Duma’s Committee on the Financial Markets
Regardless, Russian crypto adoption is continuing apace. Whereas Moscow once considered enacting a China-style crackdown on crypto, the Kremlin has in recent months pivoted toward Bitcoin and other coins.
US, UK, and EU-led sanctions are part of the reason for this. The government has launched a sandbox that uses crypto as a cross-border payment tool in international trade.
Mining Industry Growing
However, another reason lies in the rapid growth of the Russian Bitcoin mining industry. In his interview, Aksakov repeated industry and government claims that crypto mining was likely to boost the Treasury’s coffers to the tune of around $555 million per year in tax revenue. Aksakov said:
“We have legalized cryptocurrencies so that they can be used for international settlements. And I know that many companies are already doing this. If it lets firms solve economic problems […] then let them use [crypto].”
Aksakov
Crypto Credit Cards Are Interesting, Askakov Explains
The lawmaker also spoke favorably about “crypto credit cards,” which he said he had seen in operation in Asian nations.
He said he was “interested in the idea” of launching cards that let users pay in crypto, while merchants could receive rubles, instead of coins.
In many nations, these cards are operated by crypto exchanges, which are yet to be regulated in Russia. The lawmaker said:
“I have even suggested implementing [crypto credit cards] in the framework of the sandbox. [But] the Central Bank regulates everything in that space. […] It is quite possible that a system like this would work. As such, our citizens will be able to use payment cards that are linked to a regular bank account, and to a distributed registry where cryptocurrencies are circulated.”
Aksakov
However, he quickly added that “currently, we are far from” using BTC in the Russian economic system.
“As things stand, I do not see – even in the distant future – a way for Bitcoin to become a popular currency that circulates domestically. Let me remind you that it is illegal to purchase goods and services in Russia using cryptocurrencies.”
Aksakov
Sanctions Sticking-points
However, with US-EU-UK-Russia tensions only intensifying, Russian policymakers are continuing to explore the potential uses of crypto in sanctions evasion.
Aksakov concluded:
“Cryptocurrencies use a distributed registry, not the banking system. This also has certain advantages. It removes the risks associated with the supervision and control of the banking sector by countries unfriendly to Russia.”
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