Prospects for the Legal Regulation of the Formation and Use of Public Cryptocurrency Reserve Funds

The article is devoted to an analysis of the prospects and potential problems of the financial and legal regulation of public cryptocurrency reserve funds. It examines the concept of public financial reserves and concludes that such reserves consist not only of cash (in domestic and foreign currencies) but also of other liquid assets. Cryptocurrency (digital currency) can potentially serve as a reserve asset. The paper studies U.S.experience related to the establishment of the Strategic Bitcoin Reserve and the U.S. Digital Assets Reserve, revealing the features of the formation and management of these funds. The author concludes that developing economies have been the first to take an interest in the U.S. experience, while developed economies remain cautious about this practice. In Russia, cryptocurrencies could theoretically be included in a sovereign fund (the National Wealth Fund), in gold and foreign exchange (international) reserves, or in a separate fund (or funds). However, implementing any of these options is impractical due to both the volatility of digital currencies and substantial sanctions-related risks. At the same time, it is necessary to establish procedures for handling confiscated cryptocurrencies and cryptocurrencies otherwise acquired by the State in order to improve the rational management of public financial resources.

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