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- What – Challenges faced by Russian citizens in dealing with a global financial market.
- Why – it has become more unfriendly due to sanctions imposed on their country for its invasion of Ukraine.
- What Next – the recent study reveals that they are increasingly adopting cryptocurrencies as a means of preserving their wealth.
The Central Bank of Russia’s (CBR) “Nationwide Survey of Consumer Finance Households” shows that Russians now hold more crypto assets than gold. This highlights the growing acceptance of cryptocurrencies as the world gradually transitions towards comprehensive digitization.
It is also worth noting that the bank has been conducting this survey every two years since 2013. As per the report released, Russian households now possess more crypto assets than mutual funds and gold.
Survey Reveals Russian Families Hold More Cryptos than Gold
The Central Bank of Russia recently surveyed 32 regions of the country, polling over 6,000 households and 12,000 individuals on their financial assets. The survey results revealed that a growing number of Russian citizens are investing in cryptocurrencies, with the median value of crypto holdings among households being 17,500 rubles (about $225).
In fact, more than half of the households surveyed held crypto assets that exceeded the threshold in the study. This is a noteworthy shift, as earlier reports from the CBR showed that most Russian households kept their savings in bank accounts, with a median average of 15,000 rubles.
However, the 2021 survey revealed that over 65% of Russian households held financial assets, with a median value of 15,700 rubles ($200). Notably, the volume of Russian crypto transactions was reported to have reached approximately $5 billion in the same year.
Further analysis of the survey data indicated that while only 0.4% of the sampled families had invested in cryptocurrencies and Bitcoin, this was a higher percentage than the 0.3% who invested in mutual funds and gold investments. Additionally, 1.6% of the households had invested in stocks and bonds, with a median value of 26,500 rubles, and another 1.2% of respondents had electronic wallet holdings, with a median value of 1,000 rubles.
These results suggest that Russian citizens increasingly turn to alternative investment options such as cryptocurrencies to protect their wealth as the global financial market becomes more uncertain.
Growing Interest in Cryptos Among Russians
There are several reasons why cryptocurrencies, particularly Bitcoin, have become increasingly popular among Russians. One factor is the ruble’s volatility, which has created economic uncertainty and forced people to look for other investment options. Having said that, many Russians prefer digital assets as a way to diversify their portfolios.
As a result of these factors, cryptocurrencies have surpassed traditional assets like gold or mutual funds in terms of popularity among Russian citizens. Many see them as a viable alternative investment option that can offer higher returns than more traditional assets. The shift in mindset indicates an interest in the digitalization of finance as more people begin to explore the potential benefits of cryptocurrencies and other digital assets.
Furthermore, Russia’s participation in the crypto mining industry has helped to increase the accessibility of digital currencies for its citizens. As more mining operations are established, it becomes easier for individuals to acquire digital assets and participate in the growing crypto market.
Overall, Russia’s involvement in the crypto mining industry has significantly impacted the country’s economy and the adoption of digital currencies among its citizens. As the crypto market continues to grow, Russia will likely continue to play a prominent role in the industry.
The Impact of the Russian-Ukraine War on Cryptocurrencies
Also, due to the ongoing Russia-Ukraine war, cryptocurrencies became a useful tool for funding military supplies and supporting displaced families. Direct cryptocurrency donations have helped the Ukrainian government raise millions to sustain itself. Besides these reasons, as banks cannot facilitate the citizens due to the war crisis, they turned to cryptocurrency as an alternative option for their financial needs.
In addition, many Russians have started using cryptocurrencies for their cross-border payments, especially after facing bans by several countries. Although the Russian government had previously banned cryptocurrency payments in July 2022, it is now easing its stance on digital assets.
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