Russia Plans Big Bitcoin Investment To Avoid US Sanctions – Report

Investing, News, Regulation | January 15, 2019 By:

Russia may be investing in bitcoin as a way to avoid sanctions and replace the US dollar as a reserve currency, according to a report.

The Telegraph cites Russian economist Vladislav Ginko at the Russian Presidential Academy of National Economy and Public Administration, a state-funded institution. He said the Russian government has cut back on its US dollar holdings, while boosting investments in the euro, China renminbi and Japan’s yen.

The US sanctions are related to the poisoning of former Russian military officer Sergei Skripal in the UK. Ginko said Russia’s cutbacks are a move to avoid issues with slow payments on Russian oil and gas.

Ginko said bitcoin and other crypto coins now account for roughly 8pc of Russia’s GDP. The bitcoin investments could start as soon as next month.

If the Russian plans proceed, it would bolster the sagging bitcoin markets.