Russian Central Bank Acknowledged Bitcoin as the most performing asset

[Agbamoni]

I don't know at what scale the Russian government is using Bitcoin specially since bitcoin cannot help bypass sanctions at government level but they could definitely become friendlier toward Bitcoin (they legalized crypto mining on Aug 2024), and maybe I'm thinking so negatively about governments but I honestly don't see any scenario where any government would be completely friendly toward Bitcoin since they cannot control it or surveil and restrict its transactions.
They'll just use it as a tool as long as there is a benefit (like tax revenue) and ban it the moment it stops being beneficial.

Taxation isn't the only way the government are benefiting from Bitcoin. Even if the government sees indirectly hostile to Bitcoin (disguising to support it), many of the powerful individuals understand its value and make use of it privately. Publicly they control it while privately they invest in it. That’s the double standard for them and the real game being played behind the scenes. Sometimes I have this mentality that some insiders do get early access to upcoming laws. Like what's coming gives them to buy low, push for favorable policies and then sell high. That way they are profiting while pretending to be neutral in the Bitcoin world. That's just my thought.

[fuguebtc]

But I don't think this will last, as most countries are trying to create their own CBDCs as well as BRICS is trying to create its international payment system (BRICS pay) to not depend on the Western system, especially SWIFT, which is controlled by the US. I think they just see bitcoin as a temporary solution.

As for CBDCs, they do not solve the cross-border payment problem, because CBDCs are accepted in the same country but not necessarily in other countries. For example if Russia wanted to pay China using a Russian CBDC, China might not accept it and demand payment using a Chinese CBDC..

As for the BRICS payment system  it is currently limited to the founding countries of the BRICS alliance (Russia, China, India, Brazil, and South Africa) in addition to a few other countries that have recently joined. However, it remains a limited system, and payments cannot be made outside the system.

Therefore, I believe that Bitcoin is the ideal solution for all of these problems.

As long as countries cooperate to build common infrastructure, CBDCs can solve the problem of cross-border payments. It will work similarly to BRICS pay but you are right, there are limitations and it only works between cooperating countries, cannot outperform bitcoin.

Also, I don't think they will use bitcoin long term because bitcoin is not perfect, it is too volatile or can be manipulated. In case the US is not happy when Russia and China use 100% bitcoin for international trade transactions and impact the dominance of USD. They will try to dump or disrupt the market making the price of bitcoin more unstable, which will also cause significant problems for Russia and China. That may be why Russia has been under sanctions since the war broke out in 2022, but they have only recently started using bitcoin and very limitedly. They don't just use BTC, they also use ETH and USDT.



https://cryptoslate.com/russian-oil-firms-using-bitcoin-and-ethereum-for-cross-border-payments-with-china/

[yhiaali3]

Also, I don't think they will use bitcoin long term because bitcoin is not perfect, it is too volatile or can be manipulated. In case the US is not happy when Russia and China use 100% bitcoin for international trade transactions and impact the dominance of USD. They will try to dump or disrupt the market making the price of bitcoin more unstable, which will also cause significant problems for Russia and China. That may be why Russia has been under sanctions since the war broke out in 2022, but they have only recently started using bitcoin and very limitedly. They don't just use BTC, they also use ETH and USDT.

Well done, that's a very good point. Bitcoin isn't ideal at the moment, as it is volatile and subject to manipulation. If Russia and China decide to use Bitcoin for trade, the United States could harm them by manipulating the price.

For Bitcoin to be firmly accepted and trusted in international transactions, its price must stabilize and de-peg from the dollar, so that 1 BTC = 1 BTC, without being pegged to the dollar or any other currency.

[Z-tight]

many of the powerful individuals understand its value and make use of it privately. Publicly they control it while privately they invest in it. That’s the double standard for them and the real game being played behind the scenes.

If a government official individually purchases BTC and stores it, that does not have anything to do with the government on a general note, it is that individuals personal choice and it cannot be said to reflect that of the government. I am strongly of the belief that a decentralized network like BTC can only get a limited kind of support or interest from a centralized government and i wish people would understand this.

[EarnOnVictor]

The level that bitcoin has attained, no more attacks on bitcoin, because it's clear that bitcoin is a friend to the government and not an enemy.

I don't think that's going to happen. Centralized authorities never mix well with decentralized money. It doesn't matter if it is Russian government and central bank or US or Europe or China or ... they will never be friendly to Bitcoin as long as it is decentralized and out of their control.

That's true, the world's governments are smarter than trusting a decentralised system they can't control, and I've iterated this many times on the forum.

It seems people are being blinded by the government's supposed plan for the strategic reserve. How many of them have passed the bill, not to mention enforcing it? Of course, all are waiting for the US as a litmus test. Even if they have Bitcoin as a strategic reserve, that will only be an asset being held somewhere and not an asset of trust for the government's transactions.

... they will never be friendly to Bitcoin as long as it is decentralized and out of their control.

So why is Russia using Bitcoin to bypass restrictions?

Because Russia is desperate! Don't forget it has condemned Bitcoin in the past until Western sanctions.

[SANATA7]

The article shows how Bitcoin is gradually moving from the category of a "speculative instrument" to the category of assets that even central banks have to take into account. However, it is too early to talk about mass adoption of BTC by states – this requires a more stable infrastructure and less volatility.

If Russia really has a growing interest in Bitcoin as a way to counter sanctions, this could accelerate the development of the crypto economy, but also provoke new restrictions from the West.

[FortuneFollower]

The article shows how Bitcoin is gradually moving from the category of a "speculative instrument" to the category of assets that even central banks have to take into account. However, it is too early to talk about mass adoption of BTC by states – this requires a more stable infrastructure and less volatility.

If Russia really has a growing interest in Bitcoin as a way to counter sanctions, this could accelerate the development of the crypto economy, but also provoke new restrictions from the West.

Volatility is already becoming the thing of the past.

You can look at how BTC was shaken in the previous cycles and what it withstands now - and you will see a clear difference.

[Zlantann]

I don't know at what scale the Russian government is using Bitcoin specially since bitcoin cannot help bypass sanctions at government level but they could definitely become friendlier toward Bitcoin (they legalized crypto mining on Aug 2024), and maybe I'm thinking so negatively about governments but I honestly don't see any scenario where any government would be completely friendly toward Bitcoin since they cannot control it or surveil and restrict its transactions.
They'll just use it as a tool as long as there is a benefit (like tax revenue) and ban it the moment it stops being beneficial.

Taxation isn't the only way the government are benefiting from Bitcoin. Even if the government sees indirectly hostile to Bitcoin (disguising to support it), many of the powerful individuals understand its value and make use of it privately. Publicly they control it while privately they invest in it. That’s the double standard for them and the real game being played behind the scenes. Sometimes I have this mentality that some insiders do get early access to upcoming laws. Like what's coming gives them to buy low, push for favorable policies and then sell high. That way they are profiting while pretending to be neutral in the Bitcoin world. That's just my thought.

It was rumored that Donald Trump and his inner circle knew that he would pronounce a 90-day tariff pause. Many of them took advantage of this inside information to buy shares, which were resold for huge profits after he announced the pause. This market manipulation has not been investigated because, like a despot, he controls all the agencies. The real story of the market manipulation and beneficiaries might come to light after he leaves office. With this scenario in mind, it is possible that many top government officials in the US are benefiting from Bitcoin secretly.

[Agbamoni]

I don't know at what scale the Russian government is using Bitcoin specially since bitcoin cannot help bypass sanctions at government level but they could definitely become friendlier toward Bitcoin (they legalized crypto mining on Aug 2024), and maybe I'm thinking so negatively about governments but I honestly don't see any scenario where any government would be completely friendly toward Bitcoin since they cannot control it or surveil and restrict its transactions.
They'll just use it as a tool as long as there is a benefit (like tax revenue) and ban it the moment it stops being beneficial.

Taxation isn't the only way the government are benefiting from Bitcoin. Even if the government sees indirectly hostile to Bitcoin (disguising to support it), many of the powerful individuals understand its value and make use of it privately. Publicly they control it while privately they invest in it. That’s the double standard for them and the real game being played behind the scenes. Sometimes I have this mentality that some insiders do get early access to upcoming laws. Like what's coming gives them to buy low, push for favorable policies and then sell high. That way they are profiting while pretending to be neutral in the Bitcoin world. That's just my thought.

It was rumored that Donald Trump and his inner circle knew that he would pronounce a 90-day tariff pause. Many of them took advantage of this inside information to buy shares, which were resold for huge profits after he announced the pause. This market manipulation has not been investigated because, like a despot, he controls all the agencies. The real story of the market manipulation and beneficiaries might come to light after he leaves office. With this scenario in mind, it is possible that many top government officials in the US are benefiting from Bitcoin secretly.

Nothing is hidden under the sun. Right now, the belief that insiders or government officials are benefiting from Trump's Bitcoin policies is still a myth but if there is truth in it, it will eventually unfold one day.

In as much as Bitcoin is decentralized, one thing is very certain, there is always a third party watching. Whether they are buying their Bitcoin through CEX which requires KYC or through an institution like MSTR or ETFs their transactions leave a trail. History always have a way of catching up with secrets.

[shield132]

They’re basically being forced to use Bitcoin to get around U.S. sanctions, and that’s part of why there’s growing demand for BTC.

But it's always good, at least they’ve realized something important: Bitcoin is an unstoppable global currency.
Hopefully, the U.S. also wakes up to the fact that they can’t just sanction anyone forever… because when that happens, Bitcoin steps in to save the day.

Russia has 14 neighbouring countries, they don't have to use Bitcoin to get around US sanctions. They receive lots of products from my country indirectly. For example, imagine that Russian person has to buy a sanctioned car, someone goes from here to Russia and then sells cars to them. It might be expensive but it's possible and that's how many earn money these days. Neighbouring countries buy things for Russia and then send them to Russia. Usually, those who have deep roots in Russia or relatives in Russia, do such things.

[Smack That Ace]

They’re basically being forced to use Bitcoin to get around U.S. sanctions, and that’s part of why there’s growing demand for BTC.

But it's always good, at least they’ve realized something important: Bitcoin is an unstoppable global currency.
Hopefully, the U.S. also wakes up to the fact that they can’t just sanction anyone forever… because when that happens, Bitcoin steps in to save the day.

Russia has 14 neighbouring countries, they don't have to use Bitcoin to get around US sanctions. They receive lots of products from my country indirectly. For example, imagine that Russian person has to buy a sanctioned car, someone goes from here to Russia and then sells cars to them. It might be expensive but it's possible and that's how many earn money these days. Neighbouring countries buy things for Russia and then send them to Russia. Usually, those who have deep roots in Russia or relatives in Russia, do such things.

According to the report, Russia only uses bitcoin, ETH or USDT for major trade transactions such as oil and gas with close partners like China and India. They only use bitcoin as a substitute for transactions involving SWIFT, Visa and Mastercard systems...systems where USD is the main currency, they do not use bitcoin in all transactions.

Also, it should be noted that the use of bitcoin and other cryptocurrencies in international trade is still in its experimental stage. They have yet to officially recognize and consider BTC as the solution they will use long term. They are just testing, many people are mistaken about this.

[Luzin]

For Bitcoin to be firmly accepted and trusted in international transactions, its price must stabilize and de-peg from the dollar, so that 1 BTC = 1 BTC, without being pegged to the dollar or any other currency.

Stable? No, this would destroy Bitcoin's decentralized system. The world's state institutions will not be able to control the stability of Bitcoin because of its system. Therefore, many countries do not want to take the risk of making Bitcoin as money. In addition, Bitcoin's instability is one of the reasons many people use it as an investment asset or commodity. I would prefer if Bitcoin remains an asset. Not stable transaction money.

[lovesmayfamilis]

many of the powerful individuals understand its value and make use of it privately. Publicly they control it while privately they invest in it. That’s the double standard for them and the real game being played behind the scenes.

If a government official individually purchases BTC and stores it, that does not have anything to do with the government on a general note, it is that individuals personal choice and it cannot be said to reflect that of the government. I am strongly of the belief that a decentralized network like BTC can only get a limited kind of support or interest from a centralized government and i wish people would understand this.

You are right; being happy about the fact that banks in Russia have recognized something is of absolutely no importance for a simple entrepreneur, moreover, of no use. Yesterday, news appeared that the government is going to confiscate cryptocurrency from people if they carry out any trade with it. Does such news mean that Russia is moving towards acceptance? Regulators will simply stifle the idea, and without control, nothing will happen in this country.

https://forklog.com/news/konfiskatsiya-i-tokenizatsiya-v-rf-podgotovili-zakonoproekty-o-tsifrovyh-aktivah

[FortuneFollower]

For Bitcoin to be firmly accepted and trusted in international transactions, its price must stabilize and de-peg from the dollar, so that 1 BTC = 1 BTC, without being pegged to the dollar or any other currency.

Stable? No, this would destroy Bitcoin's decentralized system. The world's state institutions will not be able to control the stability of Bitcoin because of its system. Therefore, many countries do not want to take the risk of making Bitcoin as money. In addition, Bitcoin's instability is one of the reasons many people use it as an investment asset or commodity. I would prefer if Bitcoin remains an asset. Not stable transaction money.

1 BTC is still BTC.

No matter how much BTC is worth dollar-wise.

And volatility becomes the thing of the past - but BTC still doesn't fall off in price

[yhiaali3]

For Bitcoin to be firmly accepted and trusted in international transactions, its price must stabilize and de-peg from the dollar, so that 1 BTC = 1 BTC, without being pegged to the dollar or any other currency.

Stable? No, this would destroy Bitcoin's decentralized system. The world's state institutions will not be able to control the stability of Bitcoin because of its system. Therefore, many countries do not want to take the risk of making Bitcoin as money. In addition, Bitcoin's instability is one of the reasons many people use it as an investment asset or commodity. I would prefer if Bitcoin remains an asset. Not stable transaction money.

I know that Bitcoin's stability will not please investors or traders in the medium and long term, but Bitcoin's price stability is essential for it to be accepted as a unified global currency. Volatility is one of the main reasons Bitcoin cannot be considered a global currency.

When I say "Bitcoin stability," I don't mean that the government should regulate Bitcoin's price. This is impossible because, as you mentioned, the Bitcoin system is decentralized, and no one can control Bitcoin's stability.

I mean By stability,  that Bitcoin's price should fluctuate slightly. This happens with increasing adoption. When more governments and large institutions adopt Bitcoin, the price will stabilize somewhat, and whales will no longer be able to manipulate the market.

[CryptSafe]

... they will never be friendly to Bitcoin as long as it is decentralized and out of their control.

So why is Russia using Bitcoin to bypass restrictions?

I mean, I get they won’t fully adopt it or make it their official currency, but if they’re using it to get around sanctions, isn’t that just… crypto-friendly?

I don't know at what scale the Russian government is using Bitcoin specially since bitcoin cannot help bypass sanctions at government level but they could definitely become friendlier toward Bitcoin (they legalized crypto mining on Aug 2024), and maybe I'm thinking so negatively about governments but I honestly don't see any scenario where any government would be completely friendly toward Bitcoin since they cannot control it or surveil and restrict its transactions.
They'll just use it as a tool as long as there is a benefit (like tax revenue) and ban it the moment it stops being beneficial.

Russia case seems a bit different here, it was on air that the Russian government had an energy deal with China and the mode of payment was through Bitcoin and it is likely a way to bypass western sanctions on them and the both countries have strong ties which no one can come in between.

The Russian government seems open and receptive to  new innovations and we can see that in their move to adopting Bitcoin and also legalizing Crypto mining in their country. This alone shows their stand on accepting new innovations as they are also a world power so it would be in their own best interests to tap into the technology so fast to be ahead of others irrespective of the tax and other benefits they derive from Bitcoin and Crypto transactions in their country.

[ndutndut]

... they will never be friendly to Bitcoin as long as it is decentralized and out of their control.

So why is Russia using Bitcoin to bypass restrictions?

I mean, I get they won’t fully adopt it or make it their official currency, but if they’re using it to get around sanctions, isn’t that just… crypto-friendly?

I don't know at what scale the Russian government is using Bitcoin specially since bitcoin cannot help bypass sanctions at government level but they could definitely become friendlier toward Bitcoin (they legalized crypto mining on Aug 2024), and maybe I'm thinking so negatively about governments but I honestly don't see any scenario where any government would be completely friendly toward Bitcoin since they cannot control it or surveil and restrict its transactions.
They'll just use it as a tool as long as there is a benefit (like tax revenue) and ban it the moment it stops being beneficial.

Russia case seems a bit different here, it was on air that the Russian government had an energy deal with China and the mode of payment was through Bitcoin and it is likely a way to bypass western sanctions on them and the both countries have strong ties which no one can come in between.

The Russian government seems open and receptive to  new innovations and we can see that in their move to adopting Bitcoin and also legalizing Crypto mining in their country. This alone shows their stand on accepting new innovations as they are also a world power so it would be in their own best interests to tap into the technology so fast to be ahead of others irrespective of the tax and other benefits they derive from Bitcoin and Crypto transactions in their country.

Since Russia was sanctioned by America, Russian companies started using btc in international payments, of course they did this to counter the American sanctions. Of course, the regulation is only for international transactions, not for domestic transactions. As is known, American sanctions have made it difficult for Russia to trade with its main partners such as China or Turkey, because local banks are very careful with transactions related to Russia to avoid scrutiny from American regulators.

So Russia has allowed the use of cryptocurrencies in foreign trade since last year and has made some changes to the rules to legalize it regarding bitcoin mining as you said. Russia is also one of the bitcoin mining, this proves that Russia knows very well that btc is the best performing asset. Even if I am not mistaken, Russian lawmakers have encouraged their country to create a strategic bitcoin reserve. The Russian president has also stated and praised bitcoin as an alternative foreign currency reserve after the confiscation of his funds by western governments.

[Nwada001]

Volatility is already becoming the thing of the past.

You can look at how BTC was shaken in the previous cycles and what it withstands now - and you will see a clear difference.

Volatility is not yet a thing of the past, mate. Price might not be fluctuating the way it used to in the past, but that does not make Bitcoin not volatile again. As long as price still experiences up-and-down movement and it's not stable in one place, then we shouldn't be talking about Bitcoin not being volatile. Only stable coins are not volatile, Bitcoin still can't be completely predicted can only make assumptions and speculations, but you can't predict its next move.

[Mayor of ogba]

For Bitcoin to be firmly accepted and trusted in international transactions, its price must stabilize and de-peg from the dollar, so that 1 BTC = 1 BTC, without being pegged to the dollar or any other currency.

Stable? No, this would destroy Bitcoin's decentralized system. The world's state institutions will not be able to control the stability of Bitcoin because of its system. Therefore, many countries do not want to take the risk of making Bitcoin as money. In addition, Bitcoin's instability is one of the reasons many people use it as an investment asset or commodity. I would prefer if Bitcoin remains an asset. Not stable transaction money.

And volatility becomes the thing of the past - but BTC still doesn't fall off in price

I know you are saying this because of the massive increase in bitcoin price and the new all-time high bitcoin achieved yesterday. I want you to understand that bitcoin is not a stable coin, so volatility will never be a thing of the past because volatility is one of the characteristics of bitcoin. Even if Bitcoin hits $1,000,000 in the future, Bitcoin will still experience volatility, and the price will increase and decrease from time to time.

[suzanne5223]

They’re basically being forced to use Bitcoin to get around U.S. sanctions, and that’s part of why there’s growing demand for BTC.

They may use Bitcoin due to the sanction, but they all (both the Russian government, the US, Ukrainian, etc) understand that Bitcoin is the most performing asset. The records and its achievements in the last 16 years can't be denied.

Bitcoin is an unstoppable global currency.
Hopefully, the U.S. also wakes up to the fact that they can’t just sanction anyone forever… because when that happens, Bitcoin steps in to save the day.

Bitcoin is not the solution to everything, and it's not unstoppable either. Bitcoin exists because some government officials and legal teams supported it. They may not proclaim their enthusiasm for Bitcoin in public.

Volatility is already becoming the thing of the past.

You can look at how BTC was shaken in the previous cycles and what it withstands now - and you will see a clear difference.

Volatility is not yet a thing of the past, mate. Price might not be fluctuating the way it used to in the past, but that does not make Bitcoin not volatile again. As long as price still experiences up-and-down movement and it's not stable in one place, then we shouldn't be talking about Bitcoin not being volatile. Only stable coins are not volatile, Bitcoin still can't be completely predicted can only make assumptions and speculations, but you can't predict its next move.

Yes, volatility will never be a thing of the past in the Bitcoin market. Even when the market is not going down more, so it's not stable in price, it's still volatility, and the stablecoin either is also volatility in nature although their level of volatile is different from Bitcoin.
Therefore, stablecoins are not excluded and are also volatile in nature, but they have lower volatility, while Bitcoin has higher volatility.

Volatility is a statistical measure of the amount an asset's price changes during a given period of time.