- Fake News Level - 95%95%
- Potential Impact - 90%90%
As the relationships between Russia and the Western World, including EU and the United States, has been consistently worsening in the last several years, Russia has been steadily expanding its efforts to decouple and stabilize their economy from international sanctions.
With increased chances of additional sanctions against Russia, rumors surfaced a few days ago that Russia is planning to invest $10 billion into Bitcoin to evade US sanctions. The story was first reported on January 6th, when an economist currently working at Russian Presidential Academy of National Economy and Public Administration, a state-funded institution, claimed that Russia wants to use Bitcoin as a hedge as their defense against US sanctions.
Vladislav Ginko, in one of his tweets, claimed that Russia wants to convert some of its $470 billion of foreign reserves into Bitcoin. In addition, he claimed that Russia would make the $10 billion worth of investment in the first quarter of 2019.
Is this actually true? Even though diversifying into gold and Bitcoin makes sense under the current economic conditions that Russia is facing, any public release of such monumental decision seems highly unlikely. In addition, Vladislav Ginko, the person making these claims, is not a well known reputable figure on social media or the bitcoin community. His claims have also not been backed by anyone in the Russian administration or any person in authority.
If you look at Ginko previous claims, you can find some similar claims that he made in the past. For example, he once claimed that Bitcoin will reach $2 million. To back his claims, he said that he made this assumption as many of the Russian officials and their families are investing in Bitcoin. In one of his tweets, he also claimed that Bernie Madoff is the creator of Bitcoin, the real Satoshi Nakamoto.
Government purchase of digital assets comparable to gold such as Bitcoin is inevitable but for until there is a legitimate and recognized source validating these rumors, we suggesting staying on the side of caution and treating such news stories strictly as entertainment.