Putin Declares Bitcoin Unstoppable, Enacts Law Recognizing Crypto as Property in Russia

Russian President Vladimir Putin recently made a bold statement about Bitcoin and digital assets. He believes they are unstoppable. According to him, these currencies are essential tools for reducing costs and improving financial reliability.

During the Investment Forum in Moscow on December 4, he said, “Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody. These are new technologies. No matter what happens to the dollar, these tools will develop one way or the other. Everyone wants to lower costs and increase reliability.”

This strong support for digital currencies comes right after Putin signed a law that officially recognizes cryptocurrencies as property in Russia. This law exempts crypto mining and sales from value-added tax (VAT). It also removes tax liabilities for transactions made through electronic payment systems.

The new legal framework is expected to speed up the adoption of digital assets in Russia. Putin's comments also highlight a strategic interest in using Bitcoin for geopolitical and economic benefits. For instance, during the ongoing conflict in Ukraine, Bitcoin helped mitigate the impact of Western sanctions. At the recent BRICS summit, leaders discussed using cryptocurrencies for cross-border payments, showing their potential to challenge traditional financial systems.

Putin's proactive stance on Bitcoin seems to counter U.S. initiatives, especially President-elect Donald Trump's plan to create a strategic Bitcoin reserve. While promoting cryptocurrencies, Putin also addressed economic concerns. He urged the Russian government and central bank to tackle the country’s high inflation, which is currently around 9%. He remarked, “It is necessary to curb inflation, which is currently at a fairly high level.”