Russia Rules Out Bitcoin in National Reserves

On March 5, 2025, Russian Deputy Finance Minister Vladimir Kolychev made it clear that Russia has no plans to add Bitcoin or any other cryptocurrency to the National Wealth Fund (NWF).

So far, Russia has accepted and utilized cryptocurrencies as a practical financial tool in international trade. However, it does not consider them part of its national reserves and remains cautious about their long-term strategic role.

NWF Holdings: Primarily Yuan and Gold, No Digital Assets

According to Interfax, Kolychev confirmed that the Finance Ministry has no intention of changing the current investment structure of the NWF. In particular, digital assets will not be included due to their high volatility.

When asked whether there was any possibility of altering the NWF’s investment structure, Kolychev gave a firm response:

“No. Only gold and yuan,” he stated.

Interfax reports that the fund may hold up to 60% in yuan and a maximum of 40% in gold. Kolychev also said he had not heard of any discussions regarding Russia establishing a strategic cryptocurrency reserve—an idea proposed by the Trump administration in the US.

Additionally, he emphasized that high liquidity and low risk are key factors in determining the assets held in the NWF. Digital assets, due to their extreme volatility, do not meet these criteria.

“From a sovereign budget reserve perspective, it is crucial that the fund’s assets are highly liquid and can be quickly sold without significant loss in value. We do not want to be in a situation where we have to sell an asset at half the price we invested in. Digital assets are highly volatile, so we have never considered them for the NWF and have no plans to do so in the future,” Kolychev explained.

Kolychev also noted that the NWF might consider investing in less liquid and more volatile assets once it reaches 7–10% of GDP. However, he stated that the fund is still far from that level. As of February 1, the National Wealth Fund’s volume reached 11.97 trillion rubles ($122.09 billion), equivalent to 5.6% of the projected GDP for 2025, according to a report from the Russian Finance Ministry.

Meanwhile, Russia has taken legal steps to regulate cryptocurrency. In late November 2024, the Russian parliament passed a law recognizing Bitcoin and other cryptocurrencies as assets. The law imposes a personal income tax of 13–15% on crypto transactions and is awaiting President Vladimir Putin’s signature to take effect.

According to a December 2024 report by the Bank of Russia, Bitcoin accounted for 69% of Russians’ total cryptocurrency holdings on exchanges in September 2024.

So far, Russia has adopted a pragmatic approach to Bitcoin, using it in international transactions to counter sanctions but refraining from incorporating it into national reserves.