Report Says Russians Transact over $5 Billion per Year with Cryptos

Thursday, 25/11/2021 | 20:35 GMT by Felipe Erazo
  • Russians are highly active on a global basis in the cryptocurrency market.
Report Says Russians Transact over $5 Billion per Year with Cryptos
Bloomberg

Russia’s central bank unveiled a report about financial stability today, noting that the country is highly active globally when it comes to cryptocurrency transactions. According to the Bank of Russia, the total annual volume across the country’s population accounts for $5 billion or around RUB 350 billion.

However, the report did not clarify if such estimations were based on Bitcoin’s (BTC) prices, which had skyrocketed significantly since the study was compiled in July this year. That said, the Russians are among the top leaders in the $2.8 trillion crypto market around the world.

Also, the country is among the top ones that have a solid market share in crypto mining. “The relationship between digital currencies and the financial sector remains limited at the moment. However, the rapid growth and the widespread adoption of digital currencies would pose higher risks both globally and for the Russian financial market,” Bank of Russia commented.

Crypto Discussions in Russia

The study’s results come in the midst of several discussions about crypto-related fronts in the country, such as the forthcoming digital ruble’s prototype launch and thoughts from authorities about digital assets as a means for tax evasion.

Daniil Egorov, the Head of the Russian Federal Taxation Service (FTS), expressed his concerns that Cryptocurrencies could be a path for tax evasion. During an interview with a news agency, RBC, Egorov mentioned that the tax authority is ‘closely watching’ the crypto market and assessing its potential to significantly erode the country’s taxation base.

Russia has progressed with its central bank digital currency (CBDC) initiative as the country is determined to develop a digital ruble prototype in early 2022 and is set to launch a pilot program. The Bank of Russia is reportedly planning to charge fees for all CBDC transactions. However, according to Prime, quoting Kirill Pronin, the Director of the Financial Technologies at the Bank of Russia, the fees will still be lower than those charged for wire transfers.

Furthermore, transactions performed with CBDCs, digital ruble, will not be higher than those completed through the Russian Faster Payments System (FPS), an instant interbank transfers system.

Russia’s central bank unveiled a report about financial stability today, noting that the country is highly active globally when it comes to cryptocurrency transactions. According to the Bank of Russia, the total annual volume across the country’s population accounts for $5 billion or around RUB 350 billion.

However, the report did not clarify if such estimations were based on Bitcoin’s (BTC) prices, which had skyrocketed significantly since the study was compiled in July this year. That said, the Russians are among the top leaders in the $2.8 trillion crypto market around the world.

Also, the country is among the top ones that have a solid market share in crypto mining. “The relationship between digital currencies and the financial sector remains limited at the moment. However, the rapid growth and the widespread adoption of digital currencies would pose higher risks both globally and for the Russian financial market,” Bank of Russia commented.

Crypto Discussions in Russia

The study’s results come in the midst of several discussions about crypto-related fronts in the country, such as the forthcoming digital ruble’s prototype launch and thoughts from authorities about digital assets as a means for tax evasion.

Daniil Egorov, the Head of the Russian Federal Taxation Service (FTS), expressed his concerns that Cryptocurrencies could be a path for tax evasion. During an interview with a news agency, RBC, Egorov mentioned that the tax authority is ‘closely watching’ the crypto market and assessing its potential to significantly erode the country’s taxation base.

Russia has progressed with its central bank digital currency (CBDC) initiative as the country is determined to develop a digital ruble prototype in early 2022 and is set to launch a pilot program. The Bank of Russia is reportedly planning to charge fees for all CBDC transactions. However, according to Prime, quoting Kirill Pronin, the Director of the Financial Technologies at the Bank of Russia, the fees will still be lower than those charged for wire transfers.

Furthermore, transactions performed with CBDCs, digital ruble, will not be higher than those completed through the Russian Faster Payments System (FPS), an instant interbank transfers system.

About the Author: Felipe Erazo
Felipe Erazo
  • 1036 Articles
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About the Author: Felipe Erazo
Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.
  • 1036 Articles
  • 42 Followers

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