Russian Deputy Finance Minister Vladimir Kolychev recently confirmed on March 5, 2025, that Russia has no intentions of adding Bitcoin or any other cryptocurrency to the National Wealth Fund (NWF).
While Russia has integrated cryptocurrencies into its financial landscape for international trade, it views them as a practical tool rather than a part of its national reserves. The country remains cautious about the long-term strategic implications of digital assets.
NWF's investment portfolio mainly comprises Yuan and gold, as outlined by Kolychev in a statement to Interfax. He emphasized the Finance Ministry's commitment to maintaining the current investment structure, with digital assets being excluded due to their inherent volatility.
Kolychev unequivocally stated, "No. Only gold and yuan," when questioned about potential changes to the NWF's investment strategy. The NWF may hold a maximum of 60% in Yuan and up to 40% in gold, ensuring stability and security for the fund's assets.
Despite speculations about establishing a strategic cryptocurrency reserve akin to what was suggested in the US, Kolychev reiterated Russia's stance on avoiding digital assets in the NWF due to their high risk and lack of liquidity.
The Finance Ministry official highlighted the importance of maintaining assets that are easily liquidated without significant loss, underscoring the unsuitability of digital assets for the NWF's objectives.
While leaving the possibility open for diversification in less liquid and riskier assets when the NWF reaches a certain size relative to GDP, Kolychev indicated that such a scenario is not imminent given the fund's current scale.
Russia has enacted regulatory measures for cryptocurrencies, with legislation recognizing Bitcoin and other digital currencies as assets. This move, coupled with the pending imposition of a personal income tax on crypto transactions, aligns with the country's pragmatic approach towards digital assets.
Notably, recent data from the Bank of Russia indicates that Bitcoin constitutes a significant portion of Russians' cryptocurrency holdings. This reflects Russia's strategic utilization of Bitcoin for international transactions while refraining from integrating it into the national reserves.