Russian Economist Calls Strategic Bitcoin Reserves a ‘Ticking Time Bomb’

A leading Russian economist has warned Moscow against developing a national strategic Bitcoin reserve, calling crypto stockpiles a “ticking time bomb.”

Per the Russian media outlet MoneyTimes.ru, the comments came from Valentin Katasonov, the Chairman of the S. F. Sharapov Russian Economic Society and a Doctor of Economics.

Russian Economist: Strategic Bitcoin Reserves Talk ‘Like Laying Landmines’

Katasonov said he was concerned about the need for Russia “to take a cautious approach” to the idea of “creating a crypto reserve.”

Valentin Katasonov, the Chairman of the S. F. Sharapov Russian Economic Society. (Source: Ministerstvo Idey/YouTube/Screenshot)

The economist used an allegory to explain his point of view, equating creating a national crypto reserve to “laying landmines” in Russia.

Katasonov claimed that cryptoassets were “not fully fledged” forms of “money,” but “rather speculative tools that can pose threats to the economy.”

“[Talk about creating strategic crypto reserves] is way of inflating bubbles. If the bubble bursts, everything will be fine as long as the economy holds up. But, regardless, there will still be many victims.”

Katasonov

Stores selling Russian products have spread across China, and now Moscow is seizing on the interest with a plan for a major expansion of its own https://t.co/QYYmkpu6rv

— Bloomberg (@business) March 26, 2025 Economist: ‘Russian Crypto Advocates Are Fifth Columnists’

Katasonov hit out at crypto advocates who call for the “introduction of tokens” into “the official economic system.”

He called them “fifth columnists,” and suggested they intended to “undermine the country’s economic security.”

A Central Bank office building in Moscow, Russia. (Source: Dzasohovich [CC BY-SA 4.0])

The economist also cast doubt on other countries’ plans to launch strategic Bitcoin reserves.

He noted that “while some countries, such as the United States, are considering creating Bitcoin (BTC) reserves,” the process was “still far from practical implementation.”

Katasonov concluded that “no country” in the world has yet “had a successful experience launching official crypto reserves.”

Some critics may point to the example of El Salvador, whose government embarked on a bullish program of Bitcoin buying in 2021.

However, in recent months, the question of El Salvador’s BTC-purchasing has come under the spotlight of the International Monetary Fund (IMF), which disaproves of the nation’s Bitcoin pivot.

Russia's oil exports from its western ports set to rise 5% in April, sources say https://t.co/N3vd4ldYMS pic.twitter.com/AMHnfDX0HC

— Reuters (@Reuters) March 25, 2025 Central Bank Opposes BTC Stockpiling

Russia’s Central Bank has recently ruled out the idea of creating a Moscow-based BTC strategic reserve.

The nation’s finance ministry has also said that the state will continue exclusively buying gold and Chinese yuan for the time being.

However, the ministry this month claimed that should the National Welfare Fund’s level of liquid funds should reach a level equivalent to 7-10% of Russia’s GDP, Moscow could “consider” buying “riskier” and “higher-volatility” assets such as crypto.

Russia’s economy hit 200 trillion rubles ($2.37T) in 2024, growing six times faster than Europe, says Prime Minister Mishustin

4.1% GDP growth in 2023
Disposable income up 8.5%
Record-low unemployment https://t.co/za0tpFpDFj pic.twitter.com/8lOueWk0tg

— Anadolu English (@anadoluagency) March 26, 2025

Regardless, Moscow appears increasingly keen on crypto, with some prominent lawmakers expressing a cautious interest in developing a Russian state-run BTC fund.

Some have claimed that failing to “respond” to Washington’s plans to create a BTC stockpile will allow the US to take the lead in the crypto sector.

In late December last year, Finance Minister Anton Siluanov spoke to university students who asked him about creating a Russian crypto reserve.

Siluanov that the Treasury should accept that buying lower-risk assets would let Moscow “earn less, but keep its powder dry.”

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