Russian citizens have been increasingly flocking to stablecoins in lieu of the ruble, as tough economic sanctions imposed by the West wreak havoc on Russia’s financial system.
Trading volumes between the ruble and Tether were sent soaring on Monday, as Russia’s domestic currency plummeted to the lowest on record amid crippling sanctions. According to Reuters, which cited figures from virtual asset researcher Arcane Research, ruble-denominated trades with tether jumped to $29.4 million this week, marking the highest since the beginning of the year, and three times more compared to the previous week.
The data suggests that the demand for cryptocurrencies among the Russian population has skyrocketed as of recent, as the US and the EU punish the country for its invasion of Ukraine. As a result, on Monday, the ruble slid to around 101.04 per US dollar at the time of writing, the lowest value on record. “People with the ruble are trying to get out of it due to the drastic devaluation after all the sanctions,” said Arcane head of research Bendik Norheim Schei.
At the same time, the data showed that ruble-denominated trades with bitcoin remained relatively flat. As of Thursday, ruble-bitcoin trading hit $16 million— the highest so far for 2021, and then on Monday topped about $8.5 million. “Under the current market conditions, I’m not surprised to see investors, at least those in Russia, seeking stablecoins and not taking on the market risk of BTC. This is about saving their funds, not investing,” explained Schei.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.