Only Gold and Yuan: Russia Rejected Bitcoin in the National Welfare Fund
On March 5, 2025, the Ministry of Finance of the Russian Federation officially excluded the possibility of including Bitcoin and other cryptocurrencies in the National Welfare Fund (NWF). The statement made by Deputy Minister of Finance Vladimir Kolychev in an interview with 'Interfax' caused a widespread response in social media and financial circles. Russia has confirmed its commitment to traditional assets - gold and the Chinese yuan, emphasizing their reliability amid global instability.
Reasons for Refusal
As Kolychev explained, the key factor was the high volatility of Bitcoin, making it unsuitable for state reserves. 'The National Welfare Fund must provide liquidity and stability, and cryptocurrencies do not meet these requirements,' emphasized the deputy minister. As of February 1, 2025, the NWF amounted to 11.97 trillion rubles (approximately 122 billion dollars), and its structure is focused on protecting the economy from external shocks. Up to 60% of the fund's current portfolio can be placed in yuan and up to 40% in gold. The inclusion of digital currencies, according to the authorities, could undermine this stability.
The Ministry of Finance also noted that Russia does not plan to create a strategic reserve of Bitcoins, similar to the one recently announced by the USA. Instead, the country continues to strengthen its position in 'de-dollarized' assets, starting this process back in 2021 with a complete withdrawal of US dollars from the NWF.
Economic and Political Context
The decision to reject Bitcoin in the NWF reflects Russia's long-term strategy of reducing dependence on Western financial systems. After the imposition of sanctions in 2022, the country has been actively boosting the share of yuan and gold in its reserves, strengthening economic cooperation with China. In 2023, euro assets were removed from the fund, completing the transition to a new structure. Simultaneously, Russia uses cryptocurrencies in international transactions to circumvent sanctions, as secured by the law from November 2024. However, within the NWF, the authorities prefer a conservative approach.
Reaction and Consequences
The Ministry of Finance's statement caused moderate fluctuations in the cryptocurrency market: Bitcoin lost about 3% of its value within a day. Experts believe that the decision's impact on the global market will be limited, considering the isolation of the Russian economy. Opinions on social media were divided: cryptocurrency supporters called it a 'step back,' while others supported the choice for stability.
What's Next?
The rejection of Bitcoin in the NWF seems logical from the perspective of Russia's current priorities. Gold and yuan provide predictability, which is especially important amid sanctions and unstable oil prices. However, this step contrasts with global trends, where countries like the USA are beginning to integrate cryptocurrencies into their reserves. Russia may be missing the opportunity to diversify assets and prepare for a digital future. On the other hand, the authorities' caution is justified: Bitcoin, despite its growing popularity, remains a risky instrument. The question is whether this conservatism will become an obstacle in the long-term perspective.