After Vladimir Putin Said 'Nobody Can Ban Bitcoin', The Bank Of Russia Is Looking To Allow Crypto Purchases

The Bank of Russia has proposed allowing a limited group of qualified investors to purchase and sell cryptocurrencies under a new three-year experimental legal regime.

What Happened: Announced on Wednesday in accordance with President Vladimir Putin's directives, the initiative targets "particularly qualified" investors—individuals with over 100 million rubles ($1.02 million) in securities and deposits or annual income exceeding 50 million rubles ($510,000)—and companies already classified as qualified investors.

This move, detailed in a submission to the Russian government, contrasts with the country's historical reluctance to adopt Bitcoin BTC/USD as a reserve asset, as reaffirmed by Deputy Finance Minister Vladimir Kolychev.

The Bank of Russia emphasized that cryptocurrencies, lacking issuance or guarantees from any jurisdiction and driven by mathematical algorithms, are subject to significant volatility.

"Investors, when deciding to invest in cryptocurrencies, must be aware that they are taking on the risks of potential loss of their funds," the bank stated in its proposal.

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Why It Matters: This development follows Putin's December 2024 assertion that "nobody can ban Bitcoin," highlighting the decentralized nature of the technology, though his administration has historically prioritized stability over crypto adoption.

In 2021, Putin noted, "Bitcoin has value, but it's too unstable for oil trade," a stance echoed by Kolychev, who last week told Interfax that the National Wealth Fund (NWF), valued at 11.97 trillion rubles ($122.09 billion) as of Feb. 1 will continue favoring gold (40%) and yuan (up to 60%) over Bitcoin due to its volatility.

"From a sovereign budget reserve perspective, it is crucial that the fund's assets are highly liquid and can be quickly sold without significant loss in value," Kolychev said, reinforcing Russia's cautious approach despite its 5.6% GDP allocation falling below the 7-10% threshold for riskier assets.

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