Exchanges, mining businesses, and fiat on-ramp services are thriving nowadays based on high demand. This week, Xangle Research published a comprehensive report about digital currencies and the environment in Russia in 2020.
Hotbed for crypto in 2020
The study’s findings show that Russia is one of the world’s key players when it comes to the crypto economy. This is even despite regulatory setbacks. The study also confirmed that demand for crypto trading is high. It highlighted that mining and trading are currently two of the biggest sectors in Russia, which fuel the crypto environment.
Binance CEO Changpeng Zhao said, “Russia is our key market, one of the most active markets in the global blockchain space.”
“Russia owns the 3rd biggest BTC mining power (hashrate) in the world: 6.9% comes from Russia as of April 2020, according to Cbeci.org,” the research noted.
The report also said that digital currency exchanges offering ruble fiat on-ramps have some of the highest Russian internet traffic. Despite the internet traffic, the ruble is “not actively used in trading,” representing a market share of “less than 0.3%.”
Regulation and legal status
Moreover, the research showed that regulation is underway after starting with a ban on crypto. The Russian government acknowledged digital assets through its first bill, which will come into force on 1 January 2021, giving legal status to cryptocurrency.
Still, the cryptocurrency law signed by President Vladimir Putin prohibits using crypto as a means of payment in Russia.
“The Central Bank of the Russian Federation considers cryptocurrency neither a means of payment nor a store of value. Cryptocurrency is not backed by anything. One should treat it cautiously, carefully,” Putin stressed.
Sberbank, the largest bank in Russia, is considering launching their own stablecoin, according to the research.
Sergey Popov, the director of transaction business at Sberbank, mentioned, “We probably may issue a stablecoin on the basis of the law that has been adopted recently. As we can peg this stablecoin to the ruble, this token could become a basis or an instrument for settlements involving other digital financial assets.”