Key Takeaways
- Putin stated Bitcoin cannot be banned and will evolve.
- Russia recognized Bitcoin as property, exempting it from VAT.
- Bitcoin is increasingly viewed as a tool to counter sanctions.
During a speech at the Investment Forum in Moscow on December 4, Russian President Vladimir Putin affirmed Bitcoin’s importance, stating:
Who can ban Bitcoin? Nobody.
He emphasized that digital assets will continue to evolve due to their role in lowering costs and increasing reliability.
JUST IN: 🇷🇺 Russia's President Putin says, "Who can ban Bitcoin? Nobody." pic.twitter.com/MNv5tAdCWr
— Bitcoin News (@BitcoinNewsCom) December 4, 2024
Recent developments
The comments align with Russia’s recent advancements in Bitcoin regulation. Last week, Putin signed a law officially recognizing digital assets as property.
This move exempts mining and sales of Bitcoin from value-added tax (VAT), while services within electronic payment systems (EPR) also avoid tax liabilities.
These measures come as Russia explores Bitcoin’s potential to counteract Western sanctions.
Notably, the recent BRICS summit featured discussions about using Bitcoin for cross-border payments, highlighting its growing role in the global economy.
Inflation concerns persist
Putin also addressed Russia’s inflation challenges, urging collaboration between the government and central bank.
With inflation nearing 9%, Central Bank Governor Elvira Nabiullina expects it to stabilize at 4% by 2026.
Meanwhile, Bitcoin’s price responded positively to Putin’s remarks, increasing by 1% over the past 24 hours to trade at $95,742. Trading volume also rose slightly by 2%.
