After the U.S. and other Western countries sanctioned Russia in the International Settlement System (Swift), the value of the ruble plunged to an all-time low, prompting Russians to hunt for crypto such as Bitcoin.
According to Kaico, a cryptocurrency data company, on the 1st, the volume of bitcoin transactions through rubles surged to 1.5 billion rubles (around 143 million dollar) on the 25th of last month. It is the highest level since May last year.
In addition to Bitcoin, the trading volume of Tether, a stable coin that is fixed to the dollar, is also soaring. Tether trading volume through rubles is about 1.3 billion rubles (about 125 million dollar). This is also the highest in nine months.
The move is attributed to Russian citizens’ thinking of crypto as a refuge and buying it as the Russian stock market plunged and the value of the ruble plunged due to Western sanctions.
Due to Western sanctions, the value of rubles has plunged nearly 30% on the 28th of last month alone, and has been on a sharp decline day after day.
The U.S. is reportedly preparing sanctions on cryptocurrency exchanges, saying Russia can use the cryptocurrency market to raise money.
However, Binance, the world’s largest cryptocurrency exchange, allows Russian cryptocurrency transactions, saying, “We cannot ban individual transactions that are not subject to sanctions.”
In addition to Russia, Ukrainian people whose financial system is blocked are also reportedly buying cryptocurrency.
Bitcoin recorded $43,151 on CoinMarketCap as of 10:30 a.m. that day (GMT+8).