Economist Sounds Alarm that National Bitcoin Reserve is like a ‘Ticking Time Bomb’
Renowned Russian economist Valentin Katasonov has expressed strong reservations about Moscow's potential plans to establish a national Bitcoin reserve, warning that it's a "ticking time bomb" that could devastate the economy. Katasonov, Chairman of the S. F. Sharapov Russian Economic Society and a Doctor of Economics, likened creating a national crypto reserve to "laying landmines" that could detonate and wreak havoc on the economy. He emphasized that cryptocurrencies are speculative instruments that pose significant economic risks, rather than reliable stores of value.
Renowned Russian economist Valentin Katasonov has sounded the alarm on Moscow’s potential plans to establish a national Bitcoin reserve, branding it a “ticking time bomb” waiting to unleash devastation on the economy.
As reported by the Russian media outlet MoneyTimes.ru, the comments came from the Chairman of the S. F. Sharapov Russian Economic Society and a Doctor of Economics.
Economist Opinion on Strategic Bitcoin Reserves
Katasonov urged Russia to exercise caution when considering the creation of a national crypto reserve, likening it to “laying landmines” that could detonate and devastate the economy.
The Economist emphasized that cryptocurrencies are not a reliable store of value but rather “speculative instruments” that pose significant economic risks. He warned that promoting the idea of strategic crypto reserves is essentially “inflating a bubble” that could burst and leave a trail of victims in its wake.
Katasonov cautioned that even if the economy manages to withstand the shock, the consequences of a crypto market collapse would still be severe, leaving many people vulnerable to financial losses.
Russian Crypto Advocates are Fifth-Columnists
Valentin Katasonov launched a scathing attack on crypto advocates, labeling them “fifth columnists” who aim to compromise Russia’s economic security. His criticism centers on introducing cryptocurrencies into the official economic system, which he believes would be a catastrophic mistake.
Katasonov also disagreed with other countries’ plans to establish strategic Bitcoin reserves. He noted that while some nations, like the United States, are exploring the idea, it remains a distant prospect. The Economist concluded that no country has successfully launched official crypto reserves, casting doubt on the viability of such initiatives.
Some might point to El Salvador’s adoption of Bitcoin as a counterexample. However, the International Monetary Fund (IMF) recently criticized the country’s Bitcoin purchasing, fueling the debate. El Salvador’s government has since made Bitcoin acceptance voluntary for businesses, marking a significant shift in its crypto strategy.
Russia’s Central Bank has rejected the idea of creating a Moscow-based Bitcoin strategic reserve, and the nation’s finance ministry will continue to focus on buying gold and Chinese yuan for now. However, Moscow may consider investing in “riskier” assets like crypto if the National Welfare Fund’s liquid funds reach 7-10% of Russia’s GDP.
