Putin says Bitcoin is inevitable, endorses BTC over US dollar as global reserve currency Putin says Bitcoin is inevitable, endorses BTC over US dollar as global reserve currency
Russian President Vladimir Putin endorsement of Bitcoin marks a strategic shift in Russia's economic policy, with crypto playing a crucial role in navigating Western sanctions.
2 min read
Updated: Dec. 4, 2024 at 11:58 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Russian President Vladimir Putin said Bitcoin (BTC) and digital currencies are unstoppable, positioning them as key tools for reducing financial inefficiencies and enhancing economic stability.
Putin made the statements at the Investment Forum in Moscow on Dec. 4, where he argued in favor of Bitcoin as a global reserve asset over the US dollar. He criticized the US government for using the dollar’s dominance to push its political agendas by controlling who can use its currency.
Putin pointed to the $300 billion in Russian reserves frozen by Western nations after the Ukraine war began in 2022. He added that this has prompted many countries to turn to alternatives that are safe from such control — like Bitcoin.
According to the Russian President:
“Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody. These technologies will develop, one way or another… as everyone seeks to lower costs and improve reliability.”
His comments follow the enactment of a new law in Russia that officially classifies cryptocurrencies as property. The legislation provides tax relief for digital transactions conducted through electronic payment systems and exempts crypto mining and sales from value-added tax (VAT).
Strategic Implications
The legal recognition of cryptocurrencies highlights Russia’s commitment to fostering innovation within its financial system. It also reflects a calculated approach to economic strategy, as Russia seeks to mitigate external financial pressures through the adoption of digital assets.
Crypto has played a pivotal role in countering Western sanctions during the ongoing Ukraine conflict, allowing people on both sides to send and receive money amid the challenges brought on by war.
Furthermore, recent discussions at the BRICS summit highlighted the potential of digital currencies to facilitate cross-border payments and challenge the dominance of traditional financial systems. Additionally, Putin recently called to establish
Putin’s endorsement of Bitcoin and his call for technological adoption contrast with recent US initiatives, including President-elect Donald Trump’s proposed creation of a national Bitcoin reserve.
The incoming US administration’s pro-crypto stance is expected to result in a more friendly regulatory environment for the industry, which will ultimately push other countries to adopt a progressive approach toward the technology.
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Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
A businessman, politician, and media personality, Donald John Trump served as the 45th president of the United States from 2017 to 2021.
