HomeBitcoinU.S. sanctions could trigger a Russian bitcoin buying spree

U.S. sanctions could trigger a Russian bitcoin buying spree

Russian Bitcoin Buying Spree

Vladislav Ginko, an academic at Moscow’s Russian Presidential Academy of National Economy and Public Administration, expects massive Russian investment in Bitcoin by February.

Ginko anticipates a surge Russian bitcoin purchases next month, possibly triggering a bullish move in bitcoin prices. Ginko explains that this predicted investment into bitcoin would result from the need for Russia to diversify its cash reserves in preparation for the next batch of sanctions coming from the U.S. Congress.

“US sanctions may be mitigated only through Bitcoin use,” explained Mr. Ginko, adding “because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there is limited opportunities to do it (in the future).”

Ginko, from his analysis, forecasts massive Russian investment in Bitcoin in the coming weeks. Mr. Ginko, a Saint Petersburg State University graduate, has previously held many government relations and investment roles over the last 20 years.

Ginko has made several appearances on Russian state television and radio, sharing his analytical commentary about the Russian economy, suggesting that the Kremlin could turn to bitcoin for relief from U.S. sanctions.

Explaining his stance, Ginko said, “I, as an expert economist at Russian Presidential Academy of National Economic and Public Administration, put my public media figure’s weight behind the work to persuade various stakeholders of Russian society in the need for investing central bank’s reserves into Bitcoin.”

So far, Russia has held a particularly ambiguous stance on the subject, though President Vladimir Putin has identified fintech as a paramount survival tool for his country’s economy. Additionally, Putin has made no secret of his ambition for alternative reserve currencies.

Putin advocated the adoption of such alternative currencies in November 2018 at the ‘Russia Calling’ investment forum held in Moscow. Such recommendations from the Russian leader come in the face of worsening U.S.-Russia ties which have negatively impacted the Russian economy.

Putin noted, “We have no goal of moving away from the Dollar, it’s the dollar that’s moving away from us. Those making such decisions are not shooting themselves in the foot, but somewhere more delicate, further up the body. Because there’s instability when it comes to doing business with the dollar, gives rise to a desire – and it’s happening all around the world – to find alternative reserve currencies and create a financial system independent from the dollar.”

With this in mind, Ginko stands firm on his belief that a bitcoin bull run could occur within the next month, citing the likelihood that Russia’s elite turn to cryptocurrency as U.S. sanctions begin to weigh.

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Lotus Felix is a passionate cryptocurrency journalist formidably equipped with over four years of crypto reporting. With a vehement enthusiasm about cryptocurrency, Lotus is always energetically scouring the crypto industry for the latest. You can always trust Lotus for the most exciting up-to-the-minute reportage in the crypto niche.

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