Zinger Key Points
- Putin in 2021 said Bitcoin has value but is too unstable for oil trade, shaping policy.
- NWF holds 11.97 trillion rubles, prioritizing gold and yuan over crypto, Kolychev confirms.
- Get 5 stock picks identified before their biggest breakouts, identified by the same system that spotted Insmed, Sprouts, and Uber before their 20%+ gains.
Russian Deputy Finance Minister Vladimir Kolychev's statement on Wednesday that Bitcoin BTC/USD will not be included in the National Wealth Fund mirrors President Vladimir Putin's historically cautious approach to cryptocurrency.
What Happened: Kolychev, speaking to Interfax on Wednesday, confirmed that the country’s national wealth fund will maintain its focus on gold and yuan, with allocations of up to 60% in yuan and 40% in gold, explicitly rejecting 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," he said, adding, "Digital assets are highly volatile, so we have never considered them for the NWF and have no plans to do so in the future."
The NWF, valued at 11.97 trillion rubles ($122.09 billion) as of February 1, 2025—or 5.6% of projected 2025 GDP—falls below the 7-10% GDP threshold Kolychev cited for considering riskier assets, reinforcing the decision to exclude Bitcoin.
Also Read: Coinbase Rekindles Efforts To Introduce Tokenized Securities In The US
Why It Matters: Putin's comments over the years provide a backdrop to this policy.
In 2021, he acknowledged Bitcoin's potential but flagged its instability, stating, "Bitcoin has value, but it's too unstable for oil trade," according to a report.
This followed his 2017 push for regulation to curb risks like money laundering, a stance that evolved into a structured framework by 2024.
But his administration also banned crypto payments in 2022, reflecting a pattern of embracing crypto's utility—such as in international trade to counter sanctions—while restricting its role in domestic finance.
Putin's earlier engagement with blockchain, such as his 2017 meeting with Ethereum founder Vitalik Buterin at the St. Petersburg International Economic Forum, signaled openness to the technology's potential, but always within a controlled framework.
In December 2024, Putin famously said that “nobody can ban Bitcoin,” emphasizing the power of decentralized technology.
Read Next:
Image: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
