Why Russia Says “No” to Crypto Strategic Reserve?

• The Russian Finance Ministry is not considering a crypto strategic reserve. 
• Its National Welfare Fund of Russia includes 40% gold and 60% Chinese yuan in its reserve. 

The face of the crypto industry changed significantly with the support of the US president. Donald Trump promised to make the US a crypto capital of the globe and is already taking steps towards it. With the anticipated Bitcoin reserve creation, the crypto industry is set to achieve new heights in the global economy. 

Industry experts and market leaders believe that this move will push other global countries to adopt digital assets. However, Russia seems to have no interest in adding cryptocurrencies to its reserve. As per the local news outlets, the Russian Finance Ministry stated it doesn’t have any immediate plans for a national crypto reserve. 

News media outlet Interfax also reported that Russia does not intend to change the structure of its National Welfare Fund (NWF). The present regulatory structure of the fund holds 40% gold and 60% Chinese yuan. 

Russia Would Consider Crypto Strategic Reserve On One Condition

Russian Deputy Finance Minister Vladimir Kolychev answered, “No. Gold and yuan,” when journalists asked if they considered changing the structure of NWF. Apparently, Kolychev didn not hear any discussions regarding the Donald Trump administration’s plans on crypto reserve. 

Kolychev also noted that the major reason for not considering digital assets is they are risky and volatile. Furthermore, the ministry could consider a crypto reserve under one condition. As per Kolychev statement, if they accumulate 7 to 10% of GDP in risk free assets that are liquid and can be sold quickly, they would add cryptocurrencies like Bitcoin to the NWF. 

Even though the crypto industry witnessed tremendous growth over the years, the volatility of market prices remains a concern. Bitcoin price has been facing extreme price swings for the past few weeks. And, Russia not considering digital currencies for its reserve is justified when we take a look at the crypto market. 

Meanwhile, the United States is moving forward with its plans to create a crypto strategic reserve. Futuremore, the first-ever White House Crypto Summit is going to be hosted this Friday, bringing crypto leaders and the Presidential Working Group on Digital Assets together. 

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