According to a study published by the Bank of Russia, Russian families are more interested in saving using cryptocurrencies rather than investing in precious metals such as gold.
Although gold is considered one of the main traditional stores of value for investors, in Russia, many people prefer cryptocurrencies as their first choice for investment and savings.
The Bank of Russia, the country's central bank, has published a report on the financial habits of its citizens. In this report, published last week, the central bank acknowledges the great interest that cryptocurrencies have gained among its population.
The report points to the growing trend among Russian families and investors to store their funds in virtual wallets using cryptocurrencies. In fact, according to the Bank of Russia, The value of its citizens' holdings in crypto assets averages 17.500 rubles (about $217 dollars).
More details on the study conducted by the Bank of Russia
To understand the financial habits and preferences of its citizens, the Bank of Russia conducted a survey of 12.000 people from 6.000 households across the country. The central bank has been conducting a similar financial study and analysis every two years since 2013. The latest edition of its biennium report revealed interesting data on Russians' cryptocurrency holdings.
Although the percentage of Russian families investing or saving in cryptoassets is still small, the Bank of Russia notes significant growth compared to the investment and savings that families are allocating to traditional assets such as gold or investment instruments such as mutual funds.
Statistics published by the central bank show that Most Russian families keep a higher percentage of savings in cryptocurrencies than in fiat money or traditional assetsThat is, the average Russian savings in crypto assets is 17.500 rubles (about $217), while in fiat it is 15.000 rubles (about $190).
Of the cryptocurrencies, the most in demand by Russians is Bitcoin, the most capitalized cryptocurrency on the market and considered “digital gold” of the new era.
On the other hand, the percentage of Russian families investing in cryptocurrencies is also higher than those who prefer assets such as gold or vehicles such as mutual funds. According to the Bank of Russia, 0,4% of Russian families have made at least one investment in cryptocurrencies, while only 0,3% of families have deposited their savings in mutual funds.
Bans on Russia by several countries boost the use of cryptocurrencies
The boom that cryptocurrencies have gained in the last year is motivated, mainly, by the economic sanctions that Western governments have imposed against Russia after the country started a war against Ukraine.
Sanctions, the economic blockade and Russia's removal from the SWIFT system have encouraged many people in the country to turn to cryptocurrencies as the main alternative to make cross-border payments and transactions, send or receive remittances, invest and save, among others.
Even the Russian government has taken a different position regarding the use of cryptocurrencies and digital assets, promoting several proposals related to the adoption of this financial innovation.
In late March last year, the country's Prime Minister, Mikhail Vladimirovich Mishustin, urged the Bank of Russia, which remains skeptical of cryptocurrencies, to consider legalizing these digital assets on its territory. The Ministry of Finance has also been discussing with the central bank the possible creation of a national cryptocurrency exchange, while the Russian president wants to create a payment system based on blockchain technology that will allow him to free himself from foreign interference.
Blockchain analytics firm Chainalysis reported significant growth in the use of cryptocurrencies and stablecoins among Russian citizens last October.
Continue reading: Russia is proposing the creation of a national exchange and Putin is demanding an international payment system based on Blockchain technology
