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- According to the Russian central bank, Russians are among the world’s most active players in the cryptocurrency market
- Although the price of Bitcoin has nearly doubled since July, soaring from roughly $30,000 to over $60,000 in November, it is unclear if the Bank of Russia has converted these estimates
- The Russian central bank also stated that according to the Cambridge Bitcoin Electricity Consumption Index as of August 2021, Russia is one of the world’s major Bitcoin mining countries, ranking third in terms of national hash rates
According to the Russian central bank, Russians are among the world’s most active players in the cryptocurrency market. On Thursday, the Bank of Russia released a new report on financial stability, highlighting the country’s expanding involvement in the $2.8 trillion markets. The Bank of Russia estimated that the overall yearly volume of crypto transactions by the Russian population is 350 billion rubles, or $5 billion, based on estimates released by major local banks in July 2021.
Although the price of Bitcoin has nearly doubled since July, soaring from roughly $30,000 to over $60,000 in November, it is unclear if the Bank of Russia has converted these estimates. The Bank of Russia also stated in the study that the Russian Federation ranks first in the world in terms of visitors to the Binance cryptocurrency exchange. Russia, after Turkey, is the second-largest source of overall traffic on Binance, according to statistics from digital intelligence firm SimilarWeb.
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According to the Cambridge Bitcoin Electricity Consumption Index, the Russian central bank also stated that as of August 2021, Russia is one of the world’s major Bitcoin mining countries, ranking third in terms of national hash rates. Despite acknowledging Russia’s dominance in the global cryptocurrency market, the Bank of Russia still listed major risks associated with the industry, including those related to financial stability, investor protection, money laundering, and criminal financing, as well as environmental, social, and governance concerns.
The central bank did not propose any immediate actions to address these concerns, but it did say it will keep a careful eye on the market for any threats that at the present, the interaction between digital currencies and the financial industry is limited. The fast expansion and broad use of digital currencies, on the other hand, would increase global and Russian financial market vulnerabilities.
The Bank of Russia has taken a hard line on cryptocurrencies, with governor Elvira Nabiullina claiming that responsible governments should not be driving cryptocurrency adoption. The central bank is well-known for refusing to let local banks deal with cryptocurrency and instead encouraging the usage of its own digital currency. As a result, no Russian cryptocurrency exchange may currently legally offer its services.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
