Russians transact $5B in crypto every year says Bank of Russia

Though Russia has become a global leader in the crypto market, the Bank of Russia is still skeptical about Bitcoin.

Russians transact $5B in crypto every year says Bank of Russia

Russian people are among the world's most active participants of the cryptocurrency market, as per the country's central bank.

The Bank of Russa declared a fresh review on financial stability on Thursday. pointing out the country's expanding in the $2.8 trillion markets.

Citing estimations reported by major local banks in July 2021, the Bank of Russia suggested that the total annual volumes of crypto transactions of the Russian population amount to 350 billion rubles, or $5 billion.

It is unclear whether the Bank of Russia has converted these estimations as the price of Bitcoin (BTC) has almost doubled since July, surging around $30,000 over $60,000 in November.

In the report, the Bank of Russia also noticed that the Russian Federation has amounted the global leader in terms of visits to the Binance cryptocurrency exchanges. According to data from the digital intelligence provider SimilarWeb, Russia is the second big as far as terms of total traffic on Binance after on Binance after Turkey.

The Russian central bank also noticed that Russia is one of the world's largest Bitcoin mining countries, ranking third in terms of national hash rates, according to Cambridge Bitcoin Electricity Consumption Index as of August 2021.

Despite admitting Russia's leading position in the global cryptocurrency market, the Bank of Russia still outlined major risks associated with the business, including those related to financial stability, investor protection, money laundering, and criminal financing just as well as ESG risks.

The central bank didn't suggest any immediate measures to address these risks but said that it would be closely monitoring the market to identify potential threats:

“The relationship between digital currencies and the financial sector remains limited at the moment. However, the rapid growth and the widespread adoption of digital currencies would pose higher risks both globally and for the Russian financial market."

The Bank of Russia has taken a hard stance on cryptocurrencies, with governor Elvira Nabilulina arguing that responsible governments shouldn't drive crypto adoption. The central bank is known for not allowing local banks to deal with crypto and promoting the use of its own digital currency instead. This has led to a situation where no Russian crypto exchange can now offer its services legally.

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