Russia’s National Wealth Fund Stays Away from Crypto
Russia’s Deputy Finance Minister Vladimir Kolychev has put an end to rumors about incorporating cryptocurrencies into the country’s National Wealth Fund (NWF).
Investment Stability Over Crypto Volatility
According to local media reports, Kolychev emphasized that the Ministry of Finance has no intentions of adjusting the NWF’s investment strategy to include crypto assets due to their unpredictable nature.
He highlighted the fund’s focus on stability and aversion to high-risk investments. Kolychev stressed that sovereign reserves should be easily liquidated without significant price fluctuations, making cryptocurrencies unsuitable for the fund at this time.
“From the point of view of sovereign budget reserves, it is important for us that the assets in which these reserves were invested could be sold very quickly and without a large price revaluation, so that our sale does not lead to the fact that we receive not a ruble for a ruble, but 50 kopecks for a ruble. And crypto assets are an asset with increased volatility.”
NWF’s Current Assets Overview
As of March 1, 2025, the NWF managed assets worth 11.88 trillion rubles ($135.47 billion). Liquid assets made up 3.394 trillion rubles ($38.7 billion), accounting for 1.6% of Russia’s projected GDP.
No Plans for Crypto Reserves
Kolychev dismissed any talks of a government-backed crypto reserve, suggesting that such a plan would fall under the central bank’s jurisdiction rather than the finance ministry.
Interestingly, Kolychev’s stance contrasts with Russia’s overall acceptance of cryptocurrencies. While the country has implemented taxation policies for crypto transactions and mining, some lawmakers have advocated for a strategic Bitcoin reserve to counter economic challenges.
At a time when discussions on sovereign crypto reserves are gaining traction globally, Kolychev’s statement underlines Russia’s cautious approach towards incorporating digital assets into its wealth management strategy.
