Russian President Vladimir Putin has expressed strong support for Bitcoin and digital asset development, stating that Bitcoin cannot be banned and will continue to evolve. This announcement comes shortly after he signed a historic law recognizing Bitcoin and cryptocurrencies as property in Russia.
Key Highlights:
- Support for Bitcoin and Digital Assets: Putin emphasized the importance of fostering Bitcoin and digital asset advancements, signaling Russia’s commitment to embracing cryptocurrency.
- Strategic Bitcoin Reserve: As former U.S. President Donald Trump proposes building a strategic Bitcoin reserve, Putin appears to be positioning Russia to act swiftly in leading the crypto adoption race.
- Landmark Crypto Legislation: Last week, Putin signed a significant crypto taxation law, officially classifying digital assets as property. Under the new law, cryptocurrency mining and sales are exempt from VAT, and services involving transactions within the electronic payment system (EPR), including crypto, are free from tax obligations.
- Crypto and Sanctions: During the Ukraine conflict, Russia utilized Bitcoin to mitigate the effects of Western sanctions. At the recent BRICS summit, discussions also touched on using cryptocurrencies for cross-border payments.
Call to Address Inflation:
Putin also urged the Russian government and central bank to collaborate on reducing high inflation, which remains near 9%. Central Bank Governor Elvira Nabiullina anticipates inflation falling to the target rate of 4% by 2026.
Bitcoin Market Impact:
Following Putin’s remarks, Bitcoin’s price rose by 1% in the past 24 hours, currently trading at $95,742, with a slight 2% increase in trading volume.
