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Bitcoin [BTC]: US sanctions could force Kremlin’s hand into adopting Bitcoin for cash reserves




Bitcoin [BTC]: US sanctions could force Kremlin's hand into adopting Bitcoin for cash reserves
Source: Unsplash

The new year has been awfully kind to cryptocurrencies and especially Bitcoin, as the prices have escalated above the $4,000 range and stayed there for more than a week. Moreover, Russia plans to replace its cash reserves with investment in Bitcoin in a few weeks.

Vladislav Ginko of the Russian Presidential Academy of National Economy and Public Administration told Micky that the Kremlin will be forced to invest in Bitcoins if the U.S. goes through with its new sanctions.

Ginko said:

“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. Central bank of Russia sits on $466 billion of reserves and has to diversify in case there is limited opportunities to do it (in the future).”

He confirmed that the Bitcoin adoption and the investment by the Kremlin could happen within weeks. Ginko continued that this was because Bitcoin is resistant to Office of Foreign Assets Control.

Ginko has been appearing in the Russian media talking about Bitcoin adoption and is said to have ties with the government dating back to more than 20 years.

Many people in the community are speculating that the next bull run for Bitcoin and other cryptocurrencies will be triggered if Russia successfully adopts Bitcoin.

Chris Burniske tweeted:

“A money like #bitcoin is likely to be the greatest *single instance* of value capture within the programmable value universe, which is why many of the top #cryptoassets today are battling for this position.”

Ginko replied to this thread saying:

“Chris, I believe sitting here in Moscow, Russia, that the real factor of Bitcoin apotion will be when Russian government I’m working for will start investing almost $470 billion reserves into Bitcoins. I expect that it’ll be at least $10 billion in the first quarter of this year.”

Furthermore, Ginko stated:

“Huge reserves must be invested in smth right now and the one reasonable option is Bitcoin since it’s resistant to US sanctions of OFAC.”

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


HitBTC responds to allegations of insolvency, refutes claims made by Redditors




HitBTC responds to allegations of insolvency
Source: Unsplash

HitBTC, a Hong Kong-based exchange has been the center of accusations among users on Reddit, Twitter, and other forums. HitBTC users started complaining about issues regarding withdrawal and extensive procedures after one particular user @ProofofReserach put out a thread alleging insolvency of HitBTC.

To put an end to all the accusations, HitBTC has broken its silence with a blog post explaining their side of the story. According to HitBTC, their systems performed well during the winter of 2017-18, however, HitBTC mentioned that due to overwhelming demand for the services, they experienced bottlenecks at an operational level.

Referring to the BitcoinExchangeGuide article, HitBTC responded:

“A widely quoted article, in its entirety, is based on only 2 AML cases. One of them was initiated as part of the investigation into the December, 2018 BTCP security breach, at the request of the coin’s core team. Unfortunately, there is no clear indication of the nature of the second case that can be discerned from the article. The author of the article failed to track the deposit/withdrawal dynamics that did not uncover any irregularities. A simple block explorer or our public System Monitor would suffice for these purposes”

Additionally, referring to the altcoins being added and removed from the platform, the exchange said that they were honored to work with a diverse range of projects, however, since the crypto sphere was still nascent, there were lapses in their judgment in assessing the integration partners. With the above-mentioned prominent cases, HitBTC also addressed other topics.

@ProofofResearch replied to HitBTC’s blog:

“Is there a reason why you’re unable to tell people us where your Bitcoin storage is at? If what I published is as untrue as you claim it is, then providing a wallet address where your Bitcoin funds are stored will go a long way in *proving that*.”

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