Russia Says No to Crypto Reserve for Now

Russia’s Deputy Finance Minister, Vladimir Kolychev, has confirmed that the country will not be adding crypto assets to its National Welfare Fund (NWF) at this time. In a statement to journalists, Kolychev explained that crypto assets remain too volatile and that the current level of savings in the NWF does not justify risky investments.

Volatility Hindering Russia’s Crypto Reserve Plans 

When asked about potential changes to the NWF’s investment structure, Kolychev replied, “No. Gold and Yuan.” The regulatory structure currently allocates up to 60% of the NWF to Yuan and up to 40% to gold.

According to local media reports, Kolychev also dismissed the idea of creating a strategic reserve in cryptocurrencies, unlike the Trump administration in the United States. “This is more of a question for the Central Bank. To be honest, I have not heard of such discussions,” he said.

He emphasized that for sovereign budget reserves, it’s important that assets can be quickly sold without major price fluctuations. “Crypto assets are an asset with increased volatility,” Kolychev added. “We have never considered the NWF for ourselves, and we do not plan to consider it.”

Looking to the future, Kolychev suggested that once the NWF reaches a sufficient level, less liquid and potentially more profitable assets might be considered. However, he reiterated that for now, the volatility of cryptos makes them an unsuitable choice for the NWF.

Also Read: Australia Not Planning Strategic Crypto Reserve Despite US Interest