Here Is The Report: Commanding The 3rd Largest Bitcoin Hashrate In The World Russia Remains A 'Key Market For Crypto'
Russia is experimenting with cryptocurrency. What will be the effect of this on the world economy? Read the report to understand the current scenario in Russia.
Cryptocurrency In The Russian Context
Over the last few years, the fervour for cryptocurrency assets in Russia has grown wild. Publishing a comprehensive report about digital currencies and the Russian environment in 2020, this week was Xangle Research. Finding reliable information about the subject is not very easy as researchers stress the findings of the study show that Russia is one of the world’s key players when it comes to the crypto economy.
It is hard to verify the regulatory climate in the area, as it is safe to say that Russia comes to be one of the regions in the world where cryptocurrency adoption is booming.
The country is a hotbed for crypto in 2020 as a recently published study from Xangle Research explains. As Binance CEO, Changpeng Zhao (CZ) was quoted as one of the most active markets in the global blockchain space, as Russia is their key market.
The author highlights that the region is a key market for crypto as the Xangle Research report comes with a comprehensive look at the crypto economy’s relationship with Russia this year
Mining and trading are two of the biggest sectors in Russia currently fuelling the crypto environment. As Xangle’s report notes, demand for crypto trading is high.
What Do The Data Show?
According to Cbeci.org, the study highlights that Russia owns the third biggest BTC mining power (hashrate) in the world which is 6.9% coming from Russia as of April 2020.
A large portion of the traffic to major crypto exchanges comes from Russia as additionally, the 2020 crypto report covered the country.
Binance captures most of the Russian traffic and the trading platform is followed by Coinbase, Bithumb, and Kraken respectively as Xangle’s stats show.
Disclosing the two most popular platforms including Bitmex, and Bybit, the study reveals that crypto derivatives exchanges are also very popular in Russia.
With some of the highest Russian internet traffic comes digital currency exchanges that offer ruble fiat on-ramps.
Some of the top sources of traffic as well are the trading platforms such as Binance, Okex, and P2pb2b having RUB as a fiat-on-ramp. As it only represents a market share of less than 0.3%, the ruble is not actively used in trading despite the large internet traffic.
The Current Regulatory Climate In Russia
Mentioning some of the regulatory climate in Russia concerning digital currencies is the Xangle Research. Giving legal status to cryptocurrency, the study discusses the recent law coming into force on January 1, 2021, signed by Vladimir Putin.
Considering the creation of a stablecoin by the largest bank in Russia Sberbank is the report being mentioned.
According to Sergey Popov, the director of the transaction business at Sberbank told the media this year that based on the law that has been adopted recently, they probably may issue a stablecoin. Involving other digital financial assets, they can peg this stablecoin to the ruble as the token could become a basis or an instrument for settlements
Prohibiting the use of crypto as a means of payment in Russia is despite the law’s crypto recognition where Xangle researchers highlight that the cryptocurrency law Putin signed.
The authors also quote Putin’s recent statements among a number of luminaries, experts, and politicians quoted in Xangle’s 17-page study.
At the end of Xangle’s Russian crypto study, the Russian President‘s statement says the Central Bank of the Russian Federation is now considering cryptocurrency neither a means of payment nor a store of value. As Putin stressed one should treat it cautiously, carefully as cryptocurrency is not backed by anything.
Wrapping Up The Report
With Russia’s current status on cryptocurrency, it is important to know whether the country favours the currency as a stablecoin being paired with Ruble. Here we take a look at the current situation prevailing in a country that has always been cautious about the state of the fiat currency when traded against the crypto.
As researchers report on the Xangle about the possibility to treat the currency legitimately the steps are taken forward by President Putin still remain to be noted in the current contradictory situation. So, what is it like to sum up when we watch closely the steps taken by the President to encourage the trading in cryptocurrency?
All we can say is let us keep the fingers crossed and watch the turn of the events in the crypto trading and regulatory policies as accounted for.