Russian PM Mikhail Mishustin claimed that Russians have spent about 10 trillion rubles ($130 billion) on crypto. While the Russian prime minister’s statement suggests a high rate of crypto adoption in the country. According to the Chainalysis report, there is no proof that Russia has been able to dodge sanctions by using cryptocurrency.
Mishustin said this on government TV, and Moscow journalist Jonny Tickle published it on Twitter. If true, this would support US authorities’ view that Russia would turn to crypto.
Russian Prime Minister Mishustin says Russians have already put around 10 trillion rubles ($130 billion) into cryptocurrency.
I'm not surprised. Many hastily bought bitcoin when it looked like the ruble was gonna tank. Some foreigners are also using it to get money out of Russia. pic.twitter.com/o9R3VQRtP0— Jonny Tickle (@jonnytickle) April 7, 2022
According to sources, many locals have used crypto as a hedge against the concern that their currency may crash, because many of the country’s banks are unable to conduct cross-border transactions. Furthermore, some foreigners are using cryptocurrency to withdraw funds from the nation.
The rise in cryptocurrency usage in Russia coincides with a flurry of economic sanctions that have impacted the country’s currency and banking system. According to a recent Cryptoshrypto piece, the Russian central bank has denied that Russia has been trying to use crypto to escape western sanctions.
Officials from Russia and their crypto remarks
In the conflict between Ukraine and Russia, cryptocurrency has played a key role. Ukraine, for example, has received about $70 million in cryptocurrency donations. While Russia hasn’t officially adopted cryptocurrency, residents may have done so after multinational traditional banking firms left the country.
Recently, Pavel Zavalny, a high-ranking member of the Russian parliament, proposed that friendly countries be permitted to buy Russian gas in cryptocurrencies or their own currency.
Evgeny Grabchak, the country’s Deputy Minister of Energy, suggested that cryptocurrency mining be fully allowed as soon as possible.
Regulators in the country, however, disagree and believe it is impossible. According to Watcher.Guru, Russia’s central bank has rejected the idea of utilising cryptocurrency to circumvent sanctions.
JUST IN: 🇷🇺 Russia's central bank has rejected a proposal to allow the use of #cryptocurrency to circumvent sanctions.
— Watcher.Guru (@WatcherGuru) April 7, 2022
According to Ksenia Yudaeva, the bank’s first Deputy Governor, such a development would be unthinkable given the stringent regulatory and surveillance environment in place for crypto in most Western countries.
