Western Moscow Exchange Sanctions Set to Boost Russian Interest in Cryptoassets
A survey of traders and investors has found that Western sanctions on the Moscow Exchange are likely to drive up Russian interest in cryptoassets like USDT.
USD-Pegged Stablecoins the Winner as Moscow Exchange Sanctions Bite?
According to Russian media outlet RBC, 20% of respondents indicated they were ready to convert at least part of their savings into crypto. The Moscow Exchange’s suspension of trading in US dollars and euros, following US measures aimed at impeding the Kremlin’s actions in Ukraine, has spurred this interest.
The survey, which polled around 10,000 subscribers to four major Russian-language crypto and investment Telegram channels, revealed that financial issues in Russia, similar to Argentina, have led to a surge in interest in USD-pegged stablecoins. The media noted that the Russian market views the USDT stablecoin as a dollar equivalent.
The sanctions have targeted both the Moscow Exchange and the National Clearing Center, Russia’s primary body for recording foreign currency exchange transactions.
Rubles and Cash Dollars Remain Russians’ Favorites
The survey also found that the majority of participants would keep their savings in rubles and dollar banknotes, with 40% favoring the ruble and another 40% opting for USD banknotes. However, 20% of respondents indicated that sanctions against the Moscow Exchange would prompt them to buy cryptocurrency with their savings.
Initial reports of the sanctions caused some initial panic among Russian investors, but these fears have since subsided. The USD exchange rate spiked above RUB 100 shortly after the Moscow Exchange ceased trading dollars and euros. About 3-4% of respondents immediately bought dollars following the news.
Despite fewer sharp jumps in USDT markets, demand for USDT increased noticeably on the first day, as noted by a spokesperson from the Garantex crypto exchange. The average USDT exchange rate fluctuated around 94–98 rubles but returned to previous levels the next day.
Switching to USDT ‘Not a Quick Fix for Most People’ – Expert
Russian crypto expert Taisiya Romanova commented that for most people unfamiliar with cryptocurrency, switching to USDT is not an obvious or quick solution. Most will prefer to remain within the USD-RUB paradigm. She doubted the survey results indicated a major rise in USDT trading in Russia, predicting that the USDT trading picture would remain in flux and subject to the stress levels and mood of its participants.
Romanova advised Russians to refrain from impulsive decisions and to diversify their portfolios instead. She emphasized that while the sanctions have a psychological effect, leading to an increase in interest in cryptocurrencies, the impact tends to weaken over time.
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