Russia Will Buy $10 Billion in Bitcoin, Ditch US Dollar and Become Huge Crypto Whale: Russian Economist

According to a new claim from a Russian economist, the world’s 12th largest economy is about to pour $10 billion into Bitcoin.

Vladislav Ginko, a lecturer at Moscow’s Russian Presidential Academy of National Economy and Public Administration, says US sanctions are forcing Russia to diversify.

 Ginko told the Australian crypto outlet Micky that at this point, he believes Russia has no other option.

“US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The Central Bank of Russia sits on $466 billion of reserves and has to diversify in case there is limited opportunities to do it.”

A new report from Forbes highlights the impact that US sanctions are having on Russia.

“Sanctions and isolation are having an impact on the Russian economy. Although Russia is not a big exporter to the U.S., canceled energy and defense contracts in Europe coupled with bans on financing Russia’s key lenders have had an impact on the economy. What else can explain the lackluster growth story in the country since 2014? Even higher oil prices have done little to lift the Russian economy.”

In July, the state-sponsored Russian news outlet RT said President Vladimir Putin gave a speech highlighting the need for alternative reserve currencies in global trade.

“Regarding our American partners placing limitations, including those on dollar transactions, I believe is a big strategic mistake. By doing so, they are undermining the trust in the dollar as a reserve currency.”

At that time, Putin said Russia has no plans to stop using the US dollar unless it is prevented from doing so.

In Venezuela, President Nicolas Maduro announced that the country’s newly created digital asset, the Petro, is an official government currency. The Petro is supposedly backed by the country’s oil reserves. After its launch, US President Donald Trump prohibited Americans from investing in it, claiming it was designed to avoid US sanctions.

Author: Daily Hodl Staff
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Russian Parliament Approves First Readings of 3 New Crypto-laws.

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Russia’s parliament, the Duma, has overwhelmingly voted in favor of the draft cryptocurrency-themed On Digital Financial Assets bill, with 410 MPs voting in favor, and only one voting against, per media outlet Novaya Gazeta.

According to the Duma’s official website, the Russian parliament also voted in favor of two parallel bills, one on “digital rights” and the other on crowdfunding.

The bills will open the door for crypto and blockchain regulations to be imposed by financial authorities, and will give legal definition to key crypto-terminology, such as smart contracts, mining and cryptocurrencies.

The Duma website quotes Pavel Krasheninnikov, the Chairman of the Committee for State Development and Legislation, as saying the three bills will now be debated together for their second reading, allowing for “conceptual and regulatory synchronization.”

Anatoly Aksakov, the head of the Duma’s Financial Markets Committee, presented the three bills at a plenary meeting of the Duma, and noted, “By defining concepts [such as cryptocurrency, and so on], we will be able to provide legal protection for the users of these tools.”

A Russian appeals court has already decided to recognize cryptocurrency holdings as legal “property” in a high-profile case, saying that it had based its decision on the government’s bill. Some politicians, meanwhile, have called for key amendments to be made to the bills before they pass into law.

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Author: Tim Alper
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