Russia Considers Bitcoin Reverse, How Does It Affect Global Crypto Market?

Bitcoin illustration in Russia (photo: Unsplash)

JAKARTA - Currently, Russia is considering forming Bitcoin or Bitcoin Reserve reserves, to protect the economy from the impact of international sanctions and reduce dependence on traditional currencies such as the US Dollar, Euro, and Yuan.

If this step is successfully implemented, Tokocrypto analyst Fyqieh Fachrur argues that this will have a significant impact on the crypto market globally.

Russia's move to massively accumulate Bitcoin has the potential to trigger a surge in global demand for BTC, Fyqieh told VOI on Wednesday, December 11.

Fyqieh also added that this proposal will further strengthen Bitcoin as an alternative foreign exchange reserve amid global economic uncertainty, and open up opportunities for countries previously skeptical of starting to see Bitcoin as a strategic asset for diversification.

Not only for the global world, but he also sees this step will have an impact on crypto markets in the Southeast Asia region, especially Indonesia, the Philippines, and Vietnam, with a growing population of crypto users.

According to him, this trend presents a great opportunity to strengthen the local blockchain ecosystem, so that these countries can consider Bitcoin as part of a national financial strategy to encourage financial inclusion.

However, challenges remain, especially in terms of high Bitcoin price volatility. This risk is a major concern for countries that want to adopt it as a strategic asset," he said.

To protect local investors from the impact of the volatility, Fyqieh suggested that governments as regulators in Southeast Asia form a clear and measurable regulatory framework.

"With the right regulations, the potential for crypto adoption in this region can be optimized to support economic growth and financial innovation," concluded Fyqieh.