The Russian Ministry of Finance has reaffirmed its stance against including cryptocurrencies in the National Welfare Fund (NWF), citing concerns over volatility and liquidity.
Deputy Finance Minister Vladimir Kolychev emphasized that there are no plans to alter the investment structure of the fund, which remains primarily composed of Chinese yuan and gold.
Kolychev stated that the NWF’s savings level does not permit exposure to high-risk assets like cryptocurrencies. The current allocation of the Russian National Welfare Fund consists of approximately 60% yuan and 40% gold.
Kolychev Dismisses Strategic Crypto Reserve Idea
Addressing speculation about Russia establishing a strategic cryptocurrency reserve, the deputy minister clarified that he has not heard of any discussions on the matter.
Kolychev dismissed comparisons to the U.S., where the Trump administration reportedly considered such a reserve. He asserted that Russia is not in a position to take on additional financial risks at this stage.
Kolychev also noted that for Russia to consider investing in riskier assets, the NWF’s liquid funds would need to increase to around 7-10% of the country’s GDP. Only then would Moscow evaluate the possibility of diversifying into less liquid, higher-yield investments.
However, he admitted that Russia is still far from reaching its targeted reserve portfolio levels and is focused on acquiring stable assets like gold and yuan.
Central Bank’s Stance Further Reduces Crypto Prospects
Finance Minister Anton Siluanov echoed this cautious approach, noting that Russian Central Bank would rather observe how other nations handle cryptocurrency reserves before making any decisions.
Speaking at a Financial University event, Siluanov suggested that the creation of a crypto reserve could be considered in the future but confirmed that it is not currently under discussion.
He reiterated that the Russian government prefers to maintain a conservative financial strategy, avoiding speculative investments despite ongoing discussions in the U.S. about a national Bitcoin reserve.
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