The Russian government has officially dismissed speculation about adding cryptocurrency to its national financial reserves. In a recent statement reported by Interfax, Deputy Finance Minister Vladimir Kolychev confirmed that the country’s National Wealth Fund (NWF) will not alter its current investment strategy to include digital assets like Bitcoin.
This announcement underscores Russia’s cautious stance toward cryptocurrency investment, especially when it comes to state-level financial planning. Despite growing global interest in digital asset reserves — such as proposals in the U.S. for a strategic crypto reserve — Russian authorities remain focused on stability, risk management, and long-term fiscal prudence.
👉 Discover how global markets are shaping the future of digital asset adoption.
Why Cryptocurrencies Are Excluded from Russia’s National Wealth Fund
At the heart of Russia’s decision is the inherent volatility of crypto assets. Kolychev emphasized that the NWF's primary objective is capital preservation and liquidity, not speculative returns.
“We want to invest one ruble and get at least one ruble back — not just 50 kopecks,” he said. “Cryptocurrencies are too volatile to meet this standard.”
The fund currently operates under strict guidelines prioritizing low-risk, highly liquid instruments. Its main holdings consist of gold and Chinese yuan (CNY), with up to 60% allocation allowed for the yuan and as much as 40% for gold. These assets align with Russia’s broader de-dollarization strategy while maintaining value stability.
Kolychev also noted that the fund’s current size does not justify exposure to high-risk investments. According to Ministry projections, only when the NWF reaches 7% to 10% of Russia’s GDP might officials consider diversifying into less liquid but potentially higher-yielding assets — a threshold not yet met.
No Discussion on a Strategic Crypto Reserve — Yet
When asked whether Russia was considering a Bitcoin reserve similar to proposals floated during the Trump administration in the U.S., Kolychev responded plainly: “I haven’t heard any such discussions. That would fall under the Central Bank’s mandate.”
This clarification shifts responsibility to the Central Bank of Russia, which has historically maintained a conservative view on Bitcoin and other cryptocurrencies. While the Bank has explored blockchain technology and even piloted a digital ruble, it remains wary of private cryptocurrencies due to concerns over monetary sovereignty, financial stability, and regulatory control.
Russia’s Dual Approach to Bitcoin: Control and Utility
Although the state refrains from treating Bitcoin as a reserve asset or legal tender, its policy toward crypto reflects a pragmatic blend of regulation and utilization — particularly in response to Western sanctions.
Legal Use in International Trade
In August 2024, President Vladimir Putin signed a landmark law permitting Russian companies to use Bitcoin and other cryptocurrencies in international transactions. The goal? To bypass Western financial restrictions and facilitate trade with non-sanctioning countries.
The legislation took effect in September 2024, and pilot transactions were launched by the end of that year. These early tests focused on energy exports and raw material deals, primarily with partners in Asia, the Middle East, and Africa.
This move does not grant Bitcoin domestic currency status but recognizes it as a financial instrument for cross-border settlements — a significant shift in policy that opens new avenues for sanctioned entities.
Mining Now Fully Legalized
Starting November 2024, Bitcoin mining became a fully recognized economic activity in Russia. Both registered businesses and individuals can now legally operate mining rigs, provided they comply with energy usage regulations and tax obligations.
This legalization builds on earlier efforts to bring underground mining operations into the formal economy. By licensing miners and collecting taxes, the government gains oversight and revenue — turning an informal sector into a regulated industry.
However, miners must source electricity responsibly. Regions with surplus power capacity — such as Siberia and the Far East — are encouraged to host data centers, helping balance regional development and energy distribution.
👉 Learn how institutional frameworks are evolving to support secure digital asset operations.
Domestic Use Still Prohibited
Despite these progressive steps internationally and in mining, Bitcoin remains strictly non-legal tender within Russia.
Under the updated Digital Financial Assets Law (originally enacted in 2020 and revised in 2024), the Central Bank reaffirmed that only the Russian ruble holds legal currency status. Bitcoin is classified as property, not money, and cannot be used to purchase goods or services domestically.
Violations carry penalties, including fines and potential criminal charges if used to evade taxes or launder funds. This prohibition ensures the ruble retains dominance in everyday transactions while limiting systemic risks from uncontrolled crypto adoption.
Core Keywords Driving Russia’s Crypto Policy
- Bitcoin
- Cryptocurrency investment
- National Wealth Fund
- Crypto regulations
- Digital asset adoption
- Volatility of crypto assets
- Russia Bitcoin policy
- Cryptocurrency mining
These keywords reflect both public interest and policy focus areas, making them essential for understanding Russia’s evolving position in the global digital economy.
Frequently Asked Questions (FAQ)
Q: Is Russia planning to add Bitcoin to its national reserves?
A: No. The Russian Finance Ministry has clearly stated that Bitcoin will not be included in the National Wealth Fund due to its high volatility and risk profile.
Q: Can Russians use Bitcoin to pay for things?
A: No. While Bitcoin is legal as property and for international trade, it cannot be used as payment for goods or services inside Russia. Only the ruble is recognized as legal tender.
Q: Is Bitcoin mining legal in Russia?
A: Yes. Since November 2024, Bitcoin mining has been fully legalized for both companies and individuals, subject to registration and compliance with energy and tax laws.
Q: Why does Russia allow crypto use in international trade?
A: To circumvent Western sanctions and enable trade with friendly nations using alternative settlement methods outside traditional banking systems.
Q: Could Russia change its mind about holding crypto reserves in the future?
A: While currently unlikely, officials suggest that once the National Wealth Fund grows large enough (7–10% of GDP), discussions about diversification may begin — though no timeline exists.
Q: Who regulates cryptocurrency in Russia?
A: The Central Bank of Russia oversees cryptocurrency policy, while the Finance Ministry manages fiscal implications and taxation.
👉 Explore secure platforms enabling compliant access to digital asset markets worldwide.
Conclusion: Stability Over Speculation
Russia’s approach to Bitcoin and other cryptocurrencies reveals a clear priority: financial stability over speculative opportunity. While embracing select uses — such as sanctioned trade and regulated mining — the government resists integrating volatile digital assets into core fiscal mechanisms like the National Wealth Fund.
This balanced strategy allows Moscow to harness certain benefits of blockchain innovation while shielding its economy from unpredictable swings in crypto markets. As global debates continue over whether nations should hold Bitcoin reserves, Russia stands firm — for now — on the side of caution.