A senior official in the Russian parliament has stated that rising tensions between India and Pakistan may lead to an increase in Bitcoin (BTC) prices.
In an interview with the Russian Parliamentary Gazette on May 7, Anatoly Aksakov, who chairs the State Duma’s Committee on Financial Markets, pointed out that certain nations are currently utilizing Bitcoin as a method of payment for cross-border arms transactions.
Could India-Pakistan Strife Fuel Bitcoin Investment?
Aksakov elaborated that any escalation in military activity between India and Pakistan is likely to prompt global investors to seek refuge in assets such as gold, cryptocurrency, and other precious metals. He remarked, “Typically, such precarious political climates bolster various investment vehicles, including Bitcoin and gold. This is particularly true as Bitcoin is increasingly being employed for payments related to armament supply programs.”
Amid concerns over geopolitical events involving India and Pakistan, investors are finding reassurance in the historically muted impact on stock markets. For insights on market movements, read for free by providing your email at https://t.co/k7xA2yLAKO
— Bloomberg (@business) May 8, 2025
He described Bitcoin as a “safe haven asset,” noting that interest in BTC typically rises in periods marked by geopolitical tension.
The lawmaker further remarked that geopolitical uncertainty consistently encourages an increased interest in cryptocurrencies.
Despite the focus on international conflicts, Aksakov emphasized that developments in the United States predominantly influence Bitcoin prices, attributing this to the country housing the largest population of Bitcoin owners globally.
He also asserted that any potential conflict between India and Pakistan would have “no impact on the Russian ruble,” citing that the value of the ruble is primarily determined by domestic economic conditions.
Aksakov is instrumental in framing Russia’s cryptocurrency legislation and has previously acknowledged that domestic businesses are engaging with Bitcoin and similar assets for cross-border commerce.
In September 2024, Russian reports suggested that the government had established a focus group to investigate the use of cryptocurrency for “dual-use goods,” which could serve both civilian and military purposes.
A three-day ceasefire declared by Russia commenced on Thursday morning, leading to quieter skies over major Ukrainian cities after a series of heavy attacks involving drones and ballistic missiles by Russian forces https://t.co/69e2hZVJW9
— Reuters (@Reuters) May 8, 2025
Moscow Explores Stablecoin Options
Moreover, state-owned Russian banks are exploring stablecoin solutions as alternatives to traditional fiat currency transactions.
In October of the previous year, the state-run Promsvyazbank initiated a cross-border settlement platform called A7.
The bank has stated that this platform aims to simplify international payment processes. TASS reported recently that A7 operators are actively promoting the adoption of a RUB-pegged stablecoin.
Osman Kabaloev, the Deputy Director of Financial Policy at the Russian Ministry of Finance, was quoted as saying that “settlement instruments based on the ruble,” which utilize blockchain technology, are already in use in various forms.
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