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The Rise of Russian Cryptocurrencies

If you’re a cryptocurrency enthusiast, you may be wondering why Russia is pursuing a crypto-currency. After all, cryptocurrencies are cross-border and not regulated by any government. They’re popular with small investors, and they represent an economic weapon against the West. But is the Russian government behind this trend? Or is it just a clever marketing strategy? Read on to learn more about this emerging crypto-currency.

russian cryptocurrencies are cross-border

The Russian central bank has softened its stance on crypto payments and has now said that these currencies are ‘cross-border’ and can be used for cross-border transactions. While this is a positive step, it is unclear if cryptocurrencies can be used within the Russian financial system. Although Western sanctions have imposed restrictions on cross-border transactions, the Central Bank of Russia says that the country’s domestic financial system is not ready to accept crypto payments.

they are not regulated by any government

The Russian central bank recently proposed a ban on all cryptocurrencies in Russia, citing their negative effect on the financial system and on energy supplies. Russia is the world’s third largest crypto-mining nation, with approximately $5 billion in transactions annually. This has raised concerns in both the political and tech world. Though the country’s regulators and central bank have not yet decided whether or not to ban crypto, they are attempting to control their use.

they are dominated by small-time investors

The Russian government has made it clear it wants to regulate cryptocurrencies, but there is still some confusion about the exact nature of regulation. The financial regulator, Rosfin, has cited concerns that crypto could facilitate criminal activities. Despite such concerns, it seems that Rosfin has been willing to work with Binance in recent months. Still, the central bank remains wary of crypto, and has urged its members to act cautiously.

they are a weapon against the West

According to a former Treasury Department official and crypto expert Ross Delston, parking a lot of money in cryptos is not a good idea for the Russian government. Without standard currencies, the Kremlin and its allies will have trouble buying food and equipment. In addition, it will be difficult to buy electronics and spare parts if they do not have them. The Russian government will need currencies like the U.S. dollar and the euro to make these purchases.

they are a way to safeguard their wealth

It’s not hard to understand why ordinary Russians would use cryptocurrencies to safeguard their wealth, given the volatile ruble. Those who are fleeing from the regime are using crypto as a last resort, as it’s easy to hide from capital controls and start a new life outside the country. Crypto’s market value was $214 billion before the war, and 12% of the population owns some form of cryptocurrency. Crypto exchanges like Binance have been called on to block Russian users, as their funds would be at risk.

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