Russia to invest into Bitcoins to mitigate US sanctions - Blockmanity

[lionelgolden]

Hello guys, I came across this new development today. I expected it to be published already here, but I could not find it.

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Amidst various sanctions by the United States, Russia might buy Bitcoins in the Billions as a way to mitigate these sanctions.

According to Vladislav Ginko who is a lecturer at the Russian Presidential Academy of National Economy and Public Administration, the Russian government which sits on $466 Billion of reserves is planning to invest heavily into Bitcoin. He told Micky that he believes the government could start investing Billions in Bitcoin as early as next month which could potentially trigger a bull run.

Since 2012, the U.S has imposed over 60 rounds of sanctions against Kremlin, many of which do not have clear paths to get lifted. Sanctions are a way to achieve certain objectives (mostly political) in a nonviolent way, Russia certainly does not take this lightly and will try to mitigate these sanctions in any way possible.

Russia's Quest to Dethrone the US Dollar as a Reserve Currency
One of the effective ways to mitigate the sanctions is to navigate around the US Dollar. President Putin has been exploring alternatives to the US Dollar, he even said that the instability of doing business with the dollar is pushing the whole world to find alternative reserve currencies.

This is where Bitcoin could play a huge role, not necessarily in being a reserve currency at this point but serving as a hedge against other fiat systems and to diversify the portfolio.

Mr. Ginko says that the US Sanctions may be mitigated ?only through Bitcoin use? and that Russian elites are forced to move into Bitcoin by dumping US assets and the Dollar.

Read more

[teejayrichard2]

Russia investing in bitcoin is a good thing though am really not surprised as Russia is a country that is opened to technology without much sanctions as compared to US.

[KingScorpio]

Hello guys, I came across this new development today. I expected it to be published already here, but I could not find it.

--
Amidst various sanctions by the United States, Russia might buy Bitcoins in the Billions as a way to mitigate these sanctions.

According to Vladislav Ginko who is a lecturer at the Russian Presidential Academy of National Economy and Public Administration, the Russian government which sits on $466 Billion of reserves is planning to invest heavily into Bitcoin. He told Micky that he believes the government could start investing Billions in Bitcoin as early as next month which could potentially trigger a bull run.

Since 2012, the U.S has imposed over 60 rounds of sanctions against Kremlin, many of which do not have clear paths to get lifted. Sanctions are a way to achieve certain objectives (mostly political) in a nonviolent way, Russia certainly does not take this lightly and will try to mitigate these sanctions in any way possible.

Russia's Quest to Dethrone the US Dollar as a Reserve Currency
One of the effective ways to mitigate the sanctions is to navigate around the US Dollar. President Putin has been exploring alternatives to the US Dollar, he even said that the instability of doing business with the dollar is pushing the whole world to find alternative reserve currencies.

This is where Bitcoin could play a huge role, not necessarily in being a reserve currency at this point but serving as a hedge against other fiat systems and to diversify the portfolio.

Mr. Ginko says that the US Sanctions may be mitigated ?only through Bitcoin use? and that Russian elites are forced to move into Bitcoin by dumping US assets and the Dollar.

Read more

i belive that

russian billionaires, are idiots, they are basically an elite sitting in the central bank, and trusting in the hard working russian population to continue sacrificing themselves for their hedonism.

they would invest into "bitcoin" even if its not good for them.

regards

[stompix]

A professor in a University, with no ties to the Russian government is saying that Russia might start to buy bitcoin....
Totally legit.

What sanctions can Russia avoid with bitcoins?
The countries that are dealing with Russia and don't care about sanctions can use the ruble or their national currency is not like the US can stop India for paying Russia in rupees.

Besides, Putin himself is not saying anything about de-dolarisation.

1) His own words: We aren't aiming to ditch the dollar. The dollar is ditching us.
2) Russia increases investment in US government bonds to $14.6 bln in October (from their own press agency)

Russia investing in bitcoin is a good thing though am really not surprised as Russia is a country that is opened to technology without much sanctions as compared to US.

Yeah right, that's why the only thing related to cryptos coming from Russia are ICO scams.

[drumamat]

It seems that in fact, Russia will invest up to 10 billion dollars in Bitcoins at the end of February.I think that if this information is public, many businessmen from Russia will also begin to invest and buy bitcoin.Logically, in the spring the price of bitcoin will be much higher than today.Now I would like to see the official announcement in some Russian program.I'm sure there will be a lot of hype surrounding this news.

[Jating]

It seems that in fact, Russia will invest up to 10 billion dollars in Bitcoins at the end of February.I think that if this information is public, many businessmen from Russia will also begin to invest and buy bitcoin.Logically, in the spring the price of bitcoin will be much higher than today.Now I would like to see the official announcement in some Russian program.I'm sure there will be a lot of hype surrounding this news.

I beg to disagree. Why would Russian invest into a crypto backup currency which will impose high taxes? Doesn't make sense at all, besides, Russia has been contradicting about their stance since 2017 so I don't think that they will just simply allow bitcoin to flourish as well.

Just think about the Petro by Maduro, initially they said that they have like $300 million (to mitigate US sanctions as well)as investment but later it was debunked and just a figment of his imagination.

[bitfocus]

I don't think Russia is investing, rather Russia is planning to use BTC to override US Sanctions - some fool used on-line spinner and that "investing" thing came while spinning by bots.

[BuyBuyBitcoin]

A professor in a University, with no ties to the Russian government is saying that Russia might start to buy bitcoin....
Totally legit.

Yeah that sounds like crypto news

What sanctions can Russia avoid with bitcoins?

Adoption increased in Iran with their sanctions.

Russia would have been buying since 2016 if there were any truth to this though.

[dothebeats]

Russia wouldn't be interested in buying bitcoins in any way. Besides, they haven't changed their stance with bitcoin since 2016, and no official press agency from the Russian government has stated about the said article. This isn't news but just gossip until official press releases from Moscow happens.

Adoption increased in Iran with their sanctions.

This is true, but unlike Iran, Russia still is doing good economically speaking, so bitcoin adoption is still out of the equation for our Russian brethren.

[BitcoinHodler]

a country is not going to buy bitcoin at this point that it is still small, maybe in a couple of years that the adoption grows bigger they do it but not at this point where it is still small.
and most definitely they wouldn't let anybody know about it if they do buy bitcoin. this is so far the imagination of one person who is theorycrafting here.

countries are creating their own altcoin based on bitcoin's technology.

[Lizzylove1]

It's not necessary for the Russians to start buying bitcoin in order to mitigate the effect of the US and her ally sanctions. The government of Russia has already come out to say "they will have to start making direct trade using the Ruble" this is to avoid the US dollars. Since the Russian currency has no major international dominance, I think this will a major complicating issues for the old power house of the former USSR. Russian is not going to bitcoin now.

[avikz]

The legality of bitcoin and cryptocurrencies in Russia is actually a mystery. Wiki says,

As of November 2016 declared, bitcoins are "not illegal" according to the Federal Tax Service of Russia.[53][54] In September 2017 Russia central bank head Elvira Nabiullina has said it is categorically against regulating cryptocurrencies as money, as a means by which payment can be made for goods and services, and against equating them with foreign currency.[55] Deputy Finance Minister of the Russian Federation Alexei Moiseev at the same time said it's "probably illegal" to accept cryptocurrencies payments.[56] However bitcoin market sites are blocked and in court decisions stated that bitcoin is a currency surrogate which is outlawed on the territory of Russian Federation.[57]

The above statement is self contradictory, means the legality of bitcoin in Russia is questionable! So I would that Russia will take such drastic step just to avoid US sanctions! It looks like a mare speculation to me!

[Red-Apple]

it won't work!

for starters the volatility of bitcoin price is gong to be so damaging when you want to use bitcoin as a currency on large scale such that a country would be using it. imagine when you are importing something into the country and using bitcoin. and the price shoots up, no other party is going to pay you the same amount you agreed upon because they would be paying a lot more and we are talking about large amounts not 1-2 BTC!

then we have the problem with adoption which is the fact that bitcoin is not yet fully adopted so finding OTHERS  who are going to be the trading partners using bitcoin is a tough task at this point.

[stompix]

Adoption increased in Iran with their sanctions.

Russia would have been buying since 2016 if there were any truth to this though.

You realize the difference between people buying coins and a country buying coins?
If Amazon is going to accept bitcoins it won't mean the US is using bitcoins just like one county accepting bitcoin for tax payments in the US doesn't mean every company there deals with coins.

Plus I think people see sanctions as there are some guys monitoring transactions between companies and denying them...
Sanctions don't work like that.

Nobody is going to be able to stop a company in China from buying arms or selling oil to a company in North Korea, everyone could make those deals with bitcoins, with rubles, with yuans or with sheepskins, the problem is what comes after.
For a company that has a single purpose and that is trafficking it matters not, for a multinational one dealing with countries/companies/persons under sanctions means you must prepare for fines in the EU or the US and to say goodbye to a lot more than the profits you have made. Standard Chartered is going to pay another 1.5 billions for getting caught on top of the 800 million paid earlier. This is how sanctions work.

And bitcoin is not going to help you with this one.

[sudeshkumar]

Dominance of the US dollar  and the sanctions imposed by the US are the two factors which are paving way to the  cryptomarket to establish itself in all over the world .It is not only Russia but other countries who have a lobby against US dollar may follow the same suite.

[izzy13]

It is a relatively good news if it's true, but honestly I doubt that. Making a drastic economic and finance strategy so sudden is never recommended ever, furthermore for the nations like Russia. In the otherwise, if the news is true, then US surely would be under panic attack.

[apilpirman.bisnis]

I heard about Russia want to adopt bitcoin and make as legal transaction, we have support and hope many country will be available for using bitcoin or altcoin as payment transaction and make bitcoin or altcoin at higher price.

[mohammedmattar]

This seems to be unreliable
I tried to open the link but I can not open it
Through the words of guys, this is just speculation that has no basis
BTC can not be used as a partial replacement for the dollar now
He added that if the Russian government decided to invest in BTC, it would have a more elaborate plan than just leaking such a news story.

[sunsilk]

This seems to be unreliable
I tried to open the link but I can not open it

You can do a simple google research and articles will come out related to this news - rumor.
https://www.reddit.com/r/btc/comments/aead09/russian_economist_russia_will_buy_billions_of/
Russia Will Buy $10 Billion in Bitcoin, Ditch US Dollar and Become Huge Crypto Whale: Russian Economist

Russia investing in bitcoin is a good thing though am really not surprised as Russia is a country that is opened to technology without much sanctions as compared to US.

A country that will invest to bitcoin really is a good thing but I won't believe until official announcement will come out.

[bolbau]

dilemma, if Russia's decision to invest in bitcoin is only limited to political interests, maybe the bullish market won't last long enough. because bitcoin requires real support from the Russian government, not just an outlet to drop the dollar. I hope the competition that occurs in these two major countries does not have a negative effect on Bitcoin.