Despite Bitcoin‘s meteoric rise in global finance, Russia is keeping crypto out of its treasure chest. The country’s National Wealth Fund (NWF) won’t be hodling Bitcoin anytime soon, according to Deputy Finance Minister Vladimir Kolychev. No plans. None. The $122.09 billion sovereign fund is sticking with what it knows: yuan and gold.
Russia’s financial bigwigs have their reasons. Crypto? Too wild and unpredictable for serious national reserves. The NWF needs assets they can liquidate fast without taking a bath. Bitcoin’s rollercoaster price action just doesn’t fit the bill. When you’re managing 5.6% of Russia’s projected GDP, you can’t exactly YOLO into digital assets.
Currently, the fund allows up to 60% in Chinese yuan and 40% in gold. That’s it. No fancy digital coins, no matter how many laser eyes show up on Twitter profiles. The Russians want stability, and crypto just isn’t there yet. Unlike centralized exchanges, Russia’s sovereign wealth management requires predictable asset behavior with minimal volatility.
But here’s where things get interesting. If the NWF grows past 7-10% of GDP, Russia might—just might—consider riskier plays. Including crypto. They’re not saying no forever, just not right now.
Meanwhile, Russia’s relationship with crypto remains complicated. Citizens can own Bitcoin and trade it legally. They just can’t use it to buy a coffee in Moscow. International trade? That’s a different story. Russia’s been warming up to using crypto for cross-border transactions since sanctions hit. They even regulated Bitcoin mining last August. The country is now exploring creation of a regulated cryptocurrency market that would be restricted to super-qualified investors. Russian businesses have increasingly adopted cryptocurrencies as a way to conduct transactions with China and Turkey despite Western sanctions.
The Kremlin is watching other countries closely. Trump’s administration talking about strategic Bitcoin reserves? You bet Russia noticed. BRICS nations exploring blockchain? They’re taking notes.
For now, Elvira Nabiullina (a known crypto-skeptic) and her Central Bank colleagues aren’t budging. The NWF will stick with traditional assets.
But in Russia’s pragmatic financial playbook, never say never. The door isn’t locked—it’s just firmly closed until further notice.
