Putin Backs Bitcoin’s Future as Russia Advances Crypto Laws and Inflation Control

On December 4, 2024, Russian President Vladimir Putin made headlines with his endorsement of Bitcoin and other digital assets, asserting that these technologies cannot be banned and will inevitably continue to evolve.

His comments followed the recent passage of a new law in Russia, which officially recognized cryptocurrencies as property, marking a significant step in the country’s regulatory approach to digital assets.

Putin’s remarks, delivered during an investment forum in Moscow, were a clear indication of Russia’s growing acceptance of cryptocurrencies. He emphasized that Bitcoin, in particular, is set to remain a part of the global financial landscape. This stance comes amid the ongoing discussions in the U.S. about pro-Bitcoin policies, especially as former President Donald Trump has proposed building a national Bitcoin reserve. Putin’s comments may reflect a desire for Russia to remain competitive in the global crypto space.

In a related move, Russia recently implemented a new taxation law that redefines digital assets as property, exempting cryptocurrency mining and related services from VAT. This regulatory shift not only supports Russia’s growing crypto industry but also provides a financial framework that encourages further growth. Additionally, Russia has been using digital currencies to circumvent Western sanctions imposed in the wake of the Ukraine conflict, with discussions at the BRICS summit focusing on using cryptocurrencies for international payments.

While championing the rise of cryptocurrencies, Putin also addressed Russia’s internal economic challenges. In the face of persistently high inflation, currently around 9%, he called for more coordinated action between the government and the central bank. Central Bank Governor Elvira Nabiullina projected that inflation would decline over the coming years, potentially reaching the target rate of 4% by 2026.