Just as Donald Trump used to be skeptical about Bitcoin, Russian President Vladimir Putin, who previously shared similar doubts, has now accepted that Bitcoin cannot be stopped.Putin’s pro-Bitcoin stance reflects a significant transformation in Russia’s financial policy, where the country aims to leverage the advantages of cryptocurrency.
Russian President Vladimir Putin has acknowledged the growing importance of Bitcoin, especially in light of the economic sanctions imposed on Russia. Historically, Putin was skeptical about Bitcoin and other cryptocurrencies, often expressing concerns about their volatility and potential for misuse.
In a statement at the VTB Investment Forum in Moscow, Putin emphasized that Bitcoin cannot be banned, indicating a clear pivot towards embracing this technology.
Transformation in Financial Strategy
The Russian administration is adopting a broader strategy that embraces cryptocurrencies as essential tools for sidestepping restrictions imposed by Western nations. The legislative advancements are designed to facilitate international trade, particularly with nations that may be reluctant to oppose Western sanctions.
The tax structure accompanying these regulations is a crucial aspect of the initiative. Individuals earning profits from cryptocurrencies below 2.4 million rubles (approximately $22,300) will be subject to a 13% tax, while those with higher earnings will face a 15% tax. Corporations involved in cryptocurrency transactions can expect a 25% tax rate beginning next year.
Recent legislative actions have reinforced this strategic pivot. His remarks come after the introduction of a new law in Russia that formally designates cryptocurrencies as property. This legislation offers tax benefits for digital transactions made via electronic payment systems and exempts cryptocurrency mining and sales from value-added tax (VAT).
As we reported, conversations at the BRICS summit emphasized the role of digital currencies in enhancing cross-border payments and offsetting the supremacy of conventional financial systems. Russia’s supportive approach to cryptocurrencies is seen as a strategic effort to compete with Western countries and preserve its global standing. With China’s ongoing crackdown on cryptocurrency, Russia has considerable growth opportunities. Currently, there are about 17 million cryptocurrency users in Russia, compared to 93 million in the United States.
Bitcoin Hits an All-Time High
On Wednesday, Bitcoin (BTC) surged past $100,000, reaching a peak of $103,500 after the token’s price hovered just under $98,000 for nearly two weeks. This increase has pushed Bitcoin’s market capitalization beyond $2 trillion; each coin is currently trading at $101,652.
At press time. Ethereum (ETH), the second-largest cryptocurrency, also benefited from Bitcoin’s surge, rising to $3,858, reflecting an increase of more than 4.16% over the past 24 hours.
The surge in Bitcoin’s value is linked to Donald Trump’s election as the 47th President of the United States, during which he actively supported cryptocurrencies and called himself the “First Bitcoin President.” Earlier on Wednesday, Trump announced Paul Atkins as his pick for Gary Gensler’s replacement as the Securities And Exchange Commission’s (SEC) chair. Trump alluded to his pro-crypto view in his announcement, describing Atkins as someone who “recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”
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