Russia Rejects Crypto for National Wealth Fund

While the United States debates the idea of a national cryptocurrency reserve, Russia is making it clear that digital assets have no place in its National Wealth Fund (NWF). The Finance Ministry confirmed on March 4 that it has no plans to alter the fund’s investment strategy, keeping it strictly focused on stable assets like gold and yuan.

Speaking on the matter, Deputy Finance Minister Vladimir Kolychev emphasized that the NWF prioritizes low-risk, highly liquid investments, ruling out volatile assets like cryptocurrency.

“For sovereign budget reserves, it is important that assets can be sold quickly without a large price revaluation,” Kolychev stated.

Why Russia Won’t Add Crypto to the NWF

The NWF serves as Russia’s sovereign wealth fund, designed to stabilize the economy and support long-term state investments, including the pension system. Given its critical role, Kolychev said the fund’s structure must remain resistant to market shocks.

Currently, the NWF’s assets are allocated as follows:
✅ 60% in Chinese yuan
✅ 40% in gold

“We cannot afford a situation where selling reserves means receiving 50 kopecks on the ruble instead of a ruble for a ruble,” Kolychev explained, referring to crypto’s extreme volatility as a key risk factor.

The Russian government’s stance contrasts sharply with discussions in the U.S., where policymakers are exploring the feasibility of a national cryptocurrency stockpile. However, Kolychev noted that no similar proposals have surfaced in Russia.

Will Russia Ever Consider Crypto?

Despite dismissing digital assets for now, Kolychev acknowledged that Russia’s investment approach could evolve in the future.

The NWF currently holds far less than its target of 7% to 10% of GDP, meaning high-risk assets like crypto are off the table. However, once the fund reaches a more comfortable financial threshold, alternative investments could be reconsidered.

“When we get there, we will be able to think about different assets, including cryptocurrency. However, frankly speaking, the volatility parameters are not currently favorable,” he said.

For now, Russia is sticking to its strategy—gold and yuan over Bitcoin and Ethereum—leaving digital assets out of its sovereign wealth equation.