FUD Alert: Russia Nowhere Close to Adding Bitcoin to Its National Reserve, Crypto Ruble May be a Reality Instead

January 18th, 2019

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”

Key Highlights for the day

  • Russia nowhere close to adding bitcoin to the national reserve
  • The regulatory framework does not allow Russia from proceeding ahead
  • CryptoRuble is being discussed among government officials and could be a reality sooner

Russia closely looking at crypto space but no love for bitcoin

Last week the media was abuzz with a news piece coming from the Russian Federation where a Russian economist named Vladislav Ginko, who is part of a state-run think tank, said that Russia may soon ditch USD and adopt Bitcoin and Central Bank of Russia may be planning to add bitcoin to its national reserves. While that was great news, it dint sound closer to reality. Well, that’s what has happened. Elina Sidorenko, the chairperson for the government committee for overseeing cryptocurrencies, has now clarified that while Russia might want to do this, it could be another 30 years before this becomes a reality. Reason being, the country doesn’t have a legal framework to do this.

While Bitcoin is still away from being part of the national reserve, the idea of setting up a national CryptoRuble is being discussed among government officials and could very well happen within the next couple of years.

What is going to work for Russia is still under speculation, one thing is for sure that the government of Russia is watching the crypto space quite closely. Among prominent voices, Prime Minister and Former President Dimitry Medvedev were quoted saying that the bear market doesn’t spell the end of crypto.

Speaking on the extreme volatility seen in 2018, the prime minister and former president said:

“But this, of course, is not a reason to bury them [cryptocurrencies]. Here […] there are both light sides and dark sides, as in any social phenomenon, in any economic institute. And we should just watch closely what happens to them”.