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Since the US political scenario shifted in the favour of cryptocurrencies on November 5, when pro-crypto candidate Donald Trump won the presidential election against Kamala Harris, who represented a crypto-skeptic regime, global economic powers have been slowly changing their attitude towards the crypto sector, particularly in support of the futuristic idea of establishing a Bitcoin reserve to tame inflation. At the time the US is actively discussing the reserve strategy, Anton Olegovich Tkachev, a deputy of the State Duma of the Federal Assembly of the Russian Federation of the 8th convocation, has submitted a proposal, suggesting the creation of a strategic Bitcoin reserve in Russia, to Russian Finance Minister Anton Siluanov.
Russia’s Push for a Bitcoin Reserve
Interestingly, the proposal, seeking a BTC reserve in Russia by the deputy, has come a week after Russian president Vladimir Putin expressed his support for Bitcoin, saying “BTC can never be banned.”
Pointing to the extreme vulnerability of traditional currency reserves like the dollar, yuan and euro to certain unavoidable economic scenarios like inflation and international sanctions, the proposal presents Bitcoin as an independent alternative.
Russia’s Crypto Regulations and Restrictions
Until recently, Russia had not been favourable to cryptos. Perhaps, the shift in the US has prompted Moscow to reconsider its stand on the cryptocurrency sector. Lately, the country brought in some progressive changes in its crypto regulation framework, exempting the sector from the clutches of value-added tax. However, profits from crypto activities still attract a personal income tax of 15%.
Interestingly, with some small exceptions, crypto mining is now legal in Russia.
Global Trends in Bitcoin Reserves
Rumours suggest that the United States will create a Bitcoin reserve as soon as Trump assumes office in January, 2025. The US state of Pennsylvania is discussing the possibility of allocating at least 10% of state funds to BTC as a hedge against inflation.
The price of Bitcoin now stands at $97,198.57. In the last 30 days, it has seen a growth of 23%. It recently achieved the milestone of $100K.
In conclusion, a country, which invested in Bitcoin last year at the same time, has witnessed the value of its investment surging by over 121.1% by now.
The global movement towards Bitcoin reserves is gaining momentum, with Russia and other nations taking significant steps.
