Russia Named “High Income Country” By World Bank, Did Bitcoin Play a Role?

The World Bank has ranked Russia as one of the “high-income countries,” sparking speculations that Bitcoin (BTC) may have played a part in this new ranking.

Russia’s Economic Metrics Sees Massive Improvement

Russia’s rapid economic growth was cited as a basis for its newly acquired ranking. Before now, it was on the category of the “upper middle income” country.

BREAKING: The World Bank has upgraded Russia to a high-income nation, citing its rapid economic growth.

Despite enduring two years of Western sanctions, Russia now boasts the 4th largest economy in the world based on purchasing power parity.

— Jacob King (@JacobKinge) July 6, 2024

After its Gross National Income (GNI) per capita increased by 11.2% in the last year, the World Bank decided it was time to push the nation to the top tier. Reports show that Russia’s economic rise was influenced by a large increase in military-related activity in 2023. Its growth was also attributed to a rebound in trade (+6.8%), the financial sector (+8.7%), and construction (+6.6%). Altogether, these factors led to increases in both real (3.6%) and nominal (10.9%) GDP.

In the past two years, the country has faced intense Western sanctions including that from the United States Treasury department. However, Russia pushed beyond these obstacles to become the fourth largest economy in the world based on purchasing power parity.

With the latest upgrade, Russia now ranks alongside nations like the United States and western Europe. These are the two countries pioneering Russia’s punishment and sanctions for invading Ukraine.

On the flip side, Ukraine also received an upgrade from the World Bank. It went from being a lower middle income country to  the upper middle income nations category.

Russia’s Pivot to Bitcoin Amidst Sanctions

Amidst these Western ban, it is worth noting that Russia became more interested in cryptocurrencies. In one of its meetings with El Salvador and delegates from other countries, Russia made its Bitcoin stance known.

“Russia will sooner or later legalise cryptocurrencies as a means of payment. The question is, when this happens, how it will be regulated, now that the central bank and government are actively working on it,” said Russia’s Industry and Trade Minister Denis Manturov.

Moreso, Russia’s affection for BTC grew more as the BRICS Group sought an alternative currency for cross-border settlements other than the United States Dollar. Russia, Brazil, India, China and South Africa are all core members of the bloc in addition to those that joined recently.

Per growing speculation, the BRICS group is likely to consider Bitcoin in the push to stem the dollar’s hegemony.

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