As western sanctions increase the pressure on their country’s economy, many young Russians consider cryptocurrency to be a “reliable and profitable” investment option. Recent research shows that nearly two thirds (33%) of Russians are aware of bitcoin.
Russians are being sanctioned to buy property, gold, and crypto.
Financial and other penalties imposed by the West over Moscow’s decision to invade Ukraine are already affecting the economic situation in Russia. Despite the bleak perspectives, for many Russians property and gold continue to be — just like before — the most desired investment.
The share of those who regard the purchase of real estate as the most reliable investment has been declining in the past few years but it’s still 33% in 2022, the Russian analytical center NAFI revealed in a new report. And 36% of the respondents in its study believe it’s the most profitable option.
Gold has also been increasing in recognition. 25% now believe that gold investments are safe, as opposed to just 21% two-years ago. The number of investors that see gold as a future profit source has increased from 18% up to 26% in the same period.
Russians have become increasingly comfortable with the idea of keeping and accumulating paper money. In fact, 23% now consider this method to be reliable. This is an improvement from 15% in 2020. According to 21%, opening a deposit account at a bank owned by the state is secure.
According to NAFI research, cryptocurrency popularity has increased significantly in the last years. In their most recent poll, 2/3rds (67%) of respondents said they had heard about Bitcoin. This is a significant increase from the 16% that was questioned five years back.
A majority of Russians anticipate that cryptocurrency will continue to rise in value. At the moment, 89% consider crypto assets to be reliable investments, and 11% believe that buying digital currencies is profitable. Younger people (18-24 years old) are more positive. One quarter (23%) of respondents described crypto investing as profitable (24%), or reliable (23%)
As governments supporting Ukraine continue to widen restrictions limiting Russia’s access to the global financial system, concerns have been raised that Moscow may use cryptocurrencies to evade sanctions. Some crypto platforms have implemented restrictions. However, Kraken and Binance were unable to grant Kyiv permission to unilaterally block all Russian users’ accounts.
Russian authorities have begun to legislate crypto operations. A draft law “On Digital Currency” was submitted by the Finance Ministry last month. One member of the State Duma’s working group on crypto regulations said this week that Russia could use digital assets to reach the global financial markets, in spite of sanctions.
If the economic conditions in Russia get worse, do you believe more Russians would turn to crypto? Comment below.
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