Reports of a probable investment in Bitcoin by the Russia Federation in values of USD 10 billion, targeted at evading US sanctions, are making headlines.
Most of the reports cite Russian economist Vladislav Ginko, who claimed to work with his state government. He took to Twitter responding to crypto analyst Chris Burniske‘s assessment of blockchain’s value (monetary perspective) relative to global asset values.
5/ Take global asset values:
Stock Markets: $73T
Real Estate: $217T
Derivatives (low-end): $544T
Placing the world over $1 quadrillion in value, where monies most broadly defined represent < 10% of that value.https://t.co/Rvq5ISNvyU
— Chris Burniske (@cburniske) January 6, 2019
Vladislav inferred in his Tweet that Russia’s role in Bitcoin adoption will be highlighted when the country would have invested “almost USD 470 billion [of its] reserves into Bitcoins”, further making a conjecture that he expects USD 10 billion to be the minimum investment by the end of the first quarter of this year.
Chris, I believe sitting here in Moscow, Russia, that the real factor of Bitcoin apotion will be when Russian government I’m working for will start investing almost $470 billion reserves into Bitcoins. I expect that it’ll be at least $10 billion in the first quarter of this year.
— Vladislav Ginko (@martik) January 6, 2019
Vladislav further said that the intended “de-dollarization is actually forced by US sanctions when Russia is going to be almost switched off from US payments for its oil & gas”, referring to the alleged proposed investment in Bitcoin.
Indeed, the US Congress had imposed sanctions on Russia after the assertion of US intelligence agencies claiming that Russia interfered with the 2016 Presidential election and the alleged poisoning of former Russian military officer Sergei Skripal.
Although President Vladimir Putin has recently recognized the place of cryptocurrency in finance, he has given no hint as to when such a venture would be possible within the Russian Federation.
So far, the Russian government has made no official statement regarding the news about the Bitcoin investment. At best it’s conjecture, and if it isn’t, turning to Bitcoin to boycott US sanctions may not turn out so well for the Russian government in terms of trade relations, taking an example of how Iran and Venezuela’s plans to bypass US sanctions using cryptocurrencies are being foiled.
However, the possibility of considering a decentralized currency such as Bitcoin may not be as easily dismissed as news of Russia dumping USD 101 billion for euro and yuan in its recent de-dollarization plan was a laudable attempt to seek an alternative to the Greenback.
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