Will Russia inject $10 billion into Bitcoin?; Russian economist reaffirms rumors

21 Jan, 2019 | Updated: 21 Jan, 2019
by Will Heasman
Will Russia inject $10 billion into Bitcoin?; Russian economist reaffirms rumors

Rumors of a large scale investment into Bitcoin (BTC) by Russia’s government have been circulating around the cryptocurrency space of late. However, it's unclear whether or not there is actually any weight to the conjecture…  

The source of this speculation emanated from Russian economist, Vladislav Ginko.

Within a Tweet, Ginko seemed to rely that the Russian government “working for” will inject a massive total of $470 billion into Bitcoin:

This caused a ripple throughout the crypto ecosystem, with various crypto media outlets rushing to report on this seemingly bullish development.

When speaking to Australian publication, Micky about the potential investment, Ginko stated that The Kremlin would look to buy Bitcoin and introduce it to its national coffers in order to evade US sanctions:

“US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The Central Bank of Russia sits on $466 billion of reserves and has to diversify in case there is limited opportunities to do it.”

However, it was subsequently called out as “fake news” when senior Russian official Elina Sidorenko claimed that an investment on this scale wouldn’t be plausible:

"there is not a bit of common sense, much less ideas that would be considered in government circles. The Russian Federation, like any other country in the world, is simply not ready today to somehow combine its traditional financial system with cryptocurrencies. And to say that in Russia this idea can be implemented in the next at least 30 years is unlikely to be possible...(we) simply cannot do this, due to the fact that we do not have any mechanisms that would allow us to introduce a system, where these assets would be stored, which authorities would be responsible for it, which would be responsible for abuses..."

Fair enough.

But, this wasn’t enough for Ginko who hit back at Sidorenko, and staunchly stood by his previous statement:

It seems Ginko fancies himself as a bit of a bullish Bitcoin forcaster, as this isn’t his first foray into seemingly exaggerated predictions… Back in November, the economist Tweeted out a prediction so magnificent it put all other to shame:

(maybe he just wanted to be the 12th famous person on that list…)

Whether or not, Ginko has insider knowledge remains to be seen, however, it seems unlikely that the Russian government would change their stance on cryptocurrencies so readily, even in the light of US sanctions.

Although, that being said, here’s hoping Ginko’s predictions actually come true…

Read more: Russian official denies reports of $10 billion Bitcoin investment

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Read more about: Bitcoin (BTC) Russia


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