- Bitcoin might serve Putin’s interests by potentially undermining the US dollar’s dominance in global finance.
- In 2015, Russia allowed Bitcoin transactions in specific zones, indicating an openness to integrating digital currencies.
Russian President Vladimir Putin is on track for a fifth term following a three-day national election, as indicated by exit polls. With his principal adversaries either deceased, incarcerated, or exiled, his triumph seemed assured. According to the state’s VTsIOM polling agency, Putin has secured an estimated 88% of the vote, a considerable leap from the 76.7% achieved in 2018.
BREAKING: 🇷🇺 Vladimir Putin reelected as President of Russia. pic.twitter.com/g5ec7cg4X1
— BRICS (@BRICSinfo) March 17, 2024
This outcome, if verified, would mark a new high in Putin’s political journey, making him the longest-serving Russian leader in over two centuries by outlasting Josef Stalin’s tenure. This extension would perpetuate Putin’s governance, which has been marked by a comprehensive suppression of dissent, into nearly a quarter-century.
Amidst this political continuity, Russia has enacted swift legislative changes related to digital asset transactions. The State Duma and the Federation Council rapidly passed a bill that enhances the Central Bank of Russia’s regulatory authority over the payments sector.
This law specifically targets “Digital Financial Assets (DFA)” and the digital ruble, assigning the Central Bank as the chief regulator and exclusive issuer of these currencies. The legislation mandates DFA issuers to report recipient information to the Central Bank and requires businesses utilizing DFAs for payments to document all transactions in a specially designated information system.
Russia officially signs law to use digital assets for trade. pic.twitter.com/3kDDYdBISM
— BRICS (@BRICSinfo) March 15, 2024
This legislative move aims to bolster Russia’s financial independence amid Western sanctions by facilitating the use of digital assets in international transactions, As we have previously discussed in ETHNews. This initiative is part of a broader global shift towards digital currencies, highlighted by recent transactions between China and the United Arab Emirates using their digital currencies.
Moreover, the expansion of the BRICS bloc, with invitations extended to six new members, suggests a potential recalibration of global economic forces. A former White House economist has noted that this enlarged group could challenge the dominance of the US dollar in global trade.
While no specific trade currency has been proposed for the BRICS nations, a collective shift towards transactions in their national currencies could erode the dollar’s global standing. Nonetheless, many economists believe the dollar’s predominance in international trade and central bank reserves will persist, with the yuan only achieving minimal progress in comparison.
BRICS: US Billionaire Says #Bitcoin’s Rise Will Collapse US Dollarhttps://t.co/55aJySCrua
— BRICS (@BRICSinfo) March 11, 2024
As Russia prepares for another term under Putin’s leadership, these developments in political stability and digital currency regulation represent key elements of Russia’s strategy to navigate global economic challenges and sanctions, potentially altering the balance of international financial power.
Exploring the Alleged Connection Between Vladimir Putin and Bitcoin
The speculation surrounding Vladimir Putin’s association with the creation of Bitcoin was initially stirred by American businessman Dan Peña. His assertions about the Russian leader’s involvement with cryptocurrency trace back to 2019, sparking a dialogue that Peña has since frequently contributed to.
The entrepreneur posits that Putin could stand to gain from Bitcoin’s existence, suggesting that the digital currency has the potential to weaken the US dollar’s dominance in the global financial market. According to Peña, Putin’s aim might be to destabilize the US economy through the strategic deployment of cryptocurrency.
Supporting this theory are various reports on Putin’s apparent interest in cryptocurrency over the years. Notably, in 2015, the Russian government permitted Bitcoin transactions in certain areas, hinting at an openness to integrating digital currencies within its financial system.
Further fuelling speculation, Putin met with Ethereum’s founder, Vitalik Buterin, in 2017, demonstrating a direct engagement with the cryptocurrency sphere. Moreover, in 2018, there was widespread media coverage about the Kremlin’s intentions to develop its own digital currency.
These instances of Putin’s interactions with the world of cryptocurrencies lend some credence to the narrative about his involvement with Bitcoin. While the theory remains speculative, the chronological events depict Russia’s evolving stance on digital currencies and their potential role in the broader economic strategy.
