Bank Of Russia Crypto Holdings In Consumer Finance Survey
Russian households now have more funds in crypto wallets than gold investments or mutual funds. In particular, the report showed that in 2022, the median fiat value of digital assets among Russian households with crypto holdings was around $225 (17,500 rubles) based on current exchange rates, indicating that over half of these households have accumulated crypto holdings above this threshold.
The survey was conducted in 32 regions of Russia, involving more than 12,000 individuals from more than 6,000 households. Of this, the period between May and June accounted for over 70% of the respondents.
The findings of the study said that more than 65% of households had these financial assets. Bank accounts were the preferred choice for storage for 64.5% of households, with a median amount of $191 (15,000 rubles).
Russia’s central bank stated in late 2021 that Russians had conducted digital asset transactions, which totaled an annual value of around $5 billion.
Other findings
The study has revealed an important finding: only 0.4% of the surveyed households have invested in cryptocurrencies. While this percentage may seem insignificant, it is notable as it exceeds the proportion of households that have invested in traditional financial instruments such as mutual funds or gold, which stood at 0.3% in each category.
The CBR report further reveals that around 1.6% of surveyed households store their value in stocks and bonds with an average average of $338 (26,500 rubles). However, only 1.2% of respondents claimed to have electronic wallets with an average of $12 (1000 rubles) stored in them.
The results of this study indicate that there has been a growing interest in crypto among Russian households as they look for alternative investment options beyond traditional assets.
Crypto has gained momentum among investors as they find it a way to diversify investment portfolios and a potential hedge against inflation. Although it is a relatively new means of investment, households have chosen crypto over established financial instruments.
Russia’s stance on crypto
Russia’s stance on cryptocurrencies has been somewhat mixed; while the Russian government has not banned crypto use, it has maintained a cautious approach.
In 2019, the Russian government adopted a law “On Digital Financial Assets”, which laid a legal framework for cryptocurrency and blockchain technologies. This law established rules for the issuance and circulation of digital assets, as well as the rights and obligations of their owners.
Despite a mixed attitude, there are indications that the Russian government is becoming more open and accepting of digital assets. For example, the central bank of Russia has also planned to issue its central bank digital currency (CBDC). However, the CBR has recently postponed its plan to launch the CBDC for at least a few months.
In addition, crypto has proven useful for financing military supplies and provisions for displaced families in the ongoing war between Russia and Ukraine. While the Ukrainian government raised millions from direct cryptocurrency donations, citizens used crypto as an alternative to financial solutions when banks failed.
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