The Younger Populaton In Russia Holds More Than 130 Billion Dollars In Cryptocurrencies

2022-04-09 01:08:48

According to the prime minister of Russia, Mikhail Mishutin, the Russian population currently holds more than 130 billion US dollars (10 trillion Russian rubles) in cryptocurrencies.

Moreover, while addressing the annual government presentation report the prime minister stated that there are more than 10 million young Russians that already created e-wallets with “significant amounts of money”.

We are well aware that we have more than 10 million young people having opened crypto wallets so far on which they have transferred significant amounts of money, which exceeds 10 trillion rubles.Mikhail Mishutin | Prime Minister of Russia

Prior to this report, the central banks in Russia estimated that the total amount of crypto assets in the country is $214 billion, which is far more than the $5 billion worth of crypto transactions for 2021. The main reason for this sudden “change of heart” is due to the questionable stability of the ruble in the past month, as a result of the sanctions against Russia.

This resulted in a vast majority of the younger population purchasing crypto, specifically bitcoin, assets, in order to seek more reliable solutions. Other contributors are even foreigners since many of them are using crypto as means to transfer their funds out of Russia.

Interestingly, the numbers presented by the prime minister of Russia about the number of people holding crypto are awfully similar to the assumptions of the White House concerning the gold reserves of Russia. Specifically, according to the U.S., Russia currently holds around $140 billion in gold or 20% of the total reserves of the country’s central banks.

While the 130 billion dollars that the population holds in cryptocurrencies are a clear positive for Russia, especially when it comes to the comprehension and acceptance of crypto by the Russians, the country is yet to come up with a definite legal framework that will regulate the crypto scene on the long run.

One of the reasons for this situation, is the different views of the two largest financial institutions in the country, the Ministry of Finance, and the Central Bank.

Consequently, it remains to see whether the Central Bank of Russia and the Russian Ministry of Finance will find a common ground regarding the future of crypto, being that the former is attempting to find a solution, and the latter is openly suspicious of crypto in general.

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