According to the country’s Central Bank, Russians are among the most active participants in the cryptocurrency market.
The Bank of Russia on Thursday released its latest financial stability review, highlighting the country’s growing role in the $2.8 trillion market.
Referring to the estimates of the largest domestic banks in July 2021, the Bank of Russia indicated that the total annual volume of cryptocurrency export to the Russian population is 350 billion rubles, or 5 billion dollars.
It is not clear if the Bank of Russia has changed these estimates, as the price of Bitcoin (BTC) has nearly doubled since July, from around $30,000 to more than $60,000 in November.
In the report, the Bank of Russia also noted that the Russian Federation is among the world leaders in terms of the number of visits to crypto exchange Binance. Russia has the second largest volume of traffic on Binance after Turkey, according to digital intelligence provider LikeWeb.
The Central Bank of Russia also noted that Russia is one of the largest bitcoin mining countries in the world, ranking third in national hash rates according to the Cambridge Bitcoin Electricity Consumption Index for August 2021.
Despite the recognition of Russia’s leading position in the global cryptocurrency market, the Bank of Russia still identifies the main risks associated with this industry, including those related to financial stability, investor protection, money laundering and crime financing, as well as ESG risks.
The central bank has not suggested any immediate action to address these risks, but said it will monitor the market closely to identify potential threats:
The relationship between digital currencies and the financial sector remains limited at this time. However, the rapid growth and widespread use of digital currencies will create greater risks on the global level and on the Russian financial market. ”
On the topic: The Russian crypto market, despite poor regulation, is estimated at $500 billion, says the leader
The Bank of Russia has taken a tough stance on cryptocurrencies, with the head of Elvira Nabiullina arguing that the responsible authorities should not accept cryptocurrencies. The central bank is known for not allowing local banks to process cryptocurrency and instead promoting the use of its own digital currency. This has led to the fact that no Russian crypto exchange can legally offer its services.