MOSCOW, Dec 4 (Reuters) – Russian President Vladimir Putin voiced strong criticism of holding state reserves in foreign currencies, highlighting their vulnerability to political seizure. Instead, he emphasized the appeal of domestic investment and the exploration of alternative assets, including cryptocurrencies like Bitcoin.
Putin’s remarks at an investment conference came against the backdrop of Western countries freezing approximately $300 billion of Russia’s reserves following the Ukraine conflict in 2022. These reserves, accrued from energy revenues, remain a contentious topic as G7 nations deliberate on their potential use to support Ukraine.
“A legitimate question arises: why accumulate reserves if they can be so easily confiscated?” Putin stated, advocating for channeling state funds into infrastructure, logistics, science, and education, which he deemed more secure investments.
He also criticized the U.S. administration for undermining the global trust in the U.S. dollar by weaponizing it for political purposes, which he argued is prompting many nations to explore alternatives.
“For instance, Bitcoin—who can ban it? No one,” Putin remarked, underscoring the inevitability of new payment technologies due to their lower costs and enhanced reliability. His comments signal growing interest in decentralized financial systems as nations reassess traditional reserve assets.