Putin Advocates for Crypto's Building Momentum

In a speech at the Moscow Investment Forum on 4 December, Russian President Vladimir Putin expressed strong support for Bitcoin and digital assets, stating that their development is unstoppable.

He expressed at the forum:

“Who can ban bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody. Because these are new technologies and no matter what happens to the dollar, these tools will develop one way or another because everyone will strive to reduce costs and increase reliability.”

This comment comes shortly after Putin signed a landmark law recognising Bitcoin and other cryptocurrencies as property, marking a significant step in Russia's embrace of digital assets.

With the US under the leadership of President Donald Trump planning pro-Bitcoin policies, including the creation of a strategic Bitcoin reserve, Putin's actions suggest Russia is eager to act swiftly in building its own reserves.

The new legislation also exempts crypto mining and sales from value-added tax (VAT) and ensures that transaction services related to cryptocurrencies are not subject to tax.

Amidst growing global interest, particularly among BRICS nations, which are exploring crypto for cross-border payments, Russia has increasingly leveraged Bitcoin to circumvent Western sanctions during the ongoing Ukraine conflict.

Curtailing High Inflation

President Vladimir Putin urged greater coordination between the government and the central bank to address Russia's ongoing inflation challenges.

Central Bank Governor Elvira Nabiullina confirmed that inflation remains elevated at nearly 9%, though she projected a decline to the bank's target rate of 4% by 2026.

Speaking at an international investment conference hosted by Russia's second-largest bank, VTB, Putin emphasized the need for decisive action to reduce inflation, which remains a significant economic concern:

“It is also necessary to curb inflation, which is currently at a fairly high level.”