Russia has slammed the door on Bitcoin for its National Wealth Fund (NWF), choosing instead to stick with gold and Chinese yuan. Deputy Finance Minister Vladimir Kolychev made it crystal clear: cryptocurrencies are simply too volatile for the country’s sovereign piggy bank. No Bitcoin. No crypto. Period.
The NWF isn’t messing around with its allocation strategy. Up to 60% in Chinese yuan and 40% in gold. That’s it. No room for digital assets that might tank overnight. The fund, worth a hefty 11.97 trillion rubles ($122.09 billion) as of February 1, 2025, represents 5.6% of Russia’s projected GDP for the year. Not exactly chump change.
Russian officials have a simple philosophy for the fund: keep it liquid and keep it safe. They want assets they can offload quickly without watching the value evaporate. Bitcoin, with its wild price swings, doesn’t make the cut. Sorry, crypto bros. This stance contrasts sharply with the growing global trend where real estate transactions can now be completed using Bitcoin.
But here’s where things get interesting. The door isn’t permanently locked. If the NWF grows to 7-10% of GDP, Russia might—just might—consider riskier investments. Including crypto. It’s a “maybe later” rather than a hard “never.”
Meanwhile, the Russians aren’t blind to what’s happening globally. The U.S. under Trump is exploring a strategic cryptocurrency reserve. Russia’s watching closely, but not jumping on any bandwagons yet.
The country isn’t completely anti-crypto, though. A new law passed in November 2024 recognizes cryptocurrencies as assets, with a 13-15% personal income tax on transactions. Bitcoin accounts for 69% of Russians’ crypto holdings on exchanges. Despite restrictions, Russia has pragmatically allowed Bitcoin for international trade, particularly with China and Turkey in response to Western sanctions. They’re practical, if nothing else.
The Central Bank, led by known crypto-skeptic Elvira Nabiullina, gets the final say on NWF investments. She’s previously pushed for a total crypto ban in Russia.
For now, the message is clear: Russia’s sovereign wealth isn’t riding the Bitcoin rollercoaster. Maybe someday—but don’t hold your breath.
