Vladimir Putin claims bitcoin is unstoppable and will develop no matter what
- During an Investment Forum in Moscow on December 4, 2024, Vladimir Putin stated that Bitcoin and digital assets are unstoppable tools for reducing costs.
- He recently signed a law recognizing cryptocurrencies as property in Russia, exempting crypto mining from VAT.
- Putin's remarks suggest a strategic interest in leveraging Bitcoin for advantages, particularly in the face of economic sanctions and inflation.
On December 4, 2024, in Moscow, Russian President Vladimir Putin made strong statements supporting Bitcoin and digital currencies during an Investment Forum. He emphasized that these technologies are here to stay regardless of attempts to regulate or ban them, as they are vital for reducing transaction costs and enhancing financial reliability. This announcement follows Putin's recent signing of legislation that formally recognizes cryptocurrencies as property in Russia, providing a legal framework that exempts crypto mining and transactions from value-added tax (VAT). This move aims to incentivize the use of digital assets within Russia. Putin's remarks reflect a broader strategic intention, as Russia seeks to leverage Bitcoin for geopolitical purposes and to counteract the impact of Western sanctions in light of ongoing conflicts. During the Ukraine conflict, Bitcoin transactions allowed for a degree of financial resilience against these sanctions. Furthermore, at the recent BRICS summit, discussions underscored the role of cryptocurrencies in facilitating cross-border payments, showcasing their potential to create alternative financial pathways outside traditional banking systems. By presenting a supportive legal environment for crypto activities, Putin is positioning Russia to be a key player in the evolving landscape of digital finance. His comments also juxtapose the U.S.'s increasing interest in cryptocurrencies, particularly with the administration's plans to create a strategic Bitcoin reserve under President-elect Donald Trump. Putin's proactive approach highlights Russia's intention to harness the growth of cryptocurrencies to mitigate economic challenges, including high inflation rates nearing 9%. In conclusion, despite the challenges posed by inflation and international sanctions, Putin's endorsement of cryptocurrencies like Bitcoin underlines Russia’s commitment to embracing new financial technologies and positions the nation to navigate potential shifts in the global economic landscape.