This was claimed by a Russian professor “Mass” adoption of cryptocurrency is taking place in the country. Indeed, digital versions of Chinese Yuan and the ruble are booming in China and Russia respectively.
According to V1, these cryptocurrency predictions are made by Igor Belskikh. This doctor of economics is a professor in the department of economics and finance at the Russian Plekhanov University of Economics.
Belskikh emphasized this cryptocurrency is “gaining more and more popularity” in Russia. He noted that cryptocurrency has become a means for Russians to “transfer” funds abroad without having to make declarations to the government.
For him, the recent “popularity” of cryptocurrency is “related to the possibility of quickly transfer money across borders without having to pay exchange fees or taxes.“
According to him, customs officials are largely powerless to “seize cryptocurrencies from immigrants.” He also assured that these are the reasons why “everyone” is now running towards cryptocurrency.
Belskikh added that “cryptocurrencies may become the most popular interest among Russians in the following years”.
The professor further added that “thousands of Russians” have already used cryptocurrency as a stealth tool on currency exchange platforms. According to him, Russians use rubles for “buy cryptocurrencyand “when they arrive in other countries, they simply convert them into local national currencies.”
The professor also explained that the Russians used cryptocurrencies in this way to “buy real estatestocks and bonds”, as well as “to finance their studies”.
For the professor, the authorities in Russia and elsewhere have lagged far behind investors. In other words, it is relatively easy for cryptocurrency users to hold their digital holdings and those use in confidentiality.
In conclusion, Professor Belskikh believes that cryptocurrency is now integrated into “our world“”for good” and “forever”.
Russia Turns to Cryptocurrency… What About the Chinese Digital Yuan?
Seems like sanctions aimed at excluding Russia from the world economy based on the dollar have led ordinary Russians and authorities in Moscow to seek digital and non-digital alternatives to the greenback.
So, at the end of last month, the Russian company Lighthouse issued nearly $8.3 million worth of “digital financial assets” secured by commercial debt. This company is among the few companies authorized by the Central Bank for the use of “digital financial assets”.
Although these cryptos are different from bitcoin (BTC)this initiative shows that things are changing rapidly in Russia.
Actually, even the country’s central banka cryptocurrency skeptic recently approved cryptocurrency-related pilot projects.
Moreover, the interest of the Russians in digital yuan and its conventional alternative is on the rise. Cankaoxiaoxi reported that the yuan accounted for 7% of foreign currency deposits held by customers of Russian bank VTB. Similarly, about 1% of Tinkov Bank’s foreign currency deposits are yuan holdings.
However, this number is expected to increase significantly and banks have already taken steps to cope with the growing demand. Thus, we can notice that only at the beginning of 2022 13 Russian banks offered services in yuan. A year later, this number has greatly increased to 50.
Observers have noted that Russian interest in digital yuan holdings is likely to grow rapidly in Russia. In this case, citizens can bypass the banks and buy e-CNY through applications accessible from their mobile phones.
Can digital yuan and digital ruble become currencies in international trade?
As part of its trade agreements with Beijing, Moscow also expressed interest in using its digital ruble. For its part, China has distanced itself from public assertions about the digital yuan’s cross-border powers. However, measures are already in place to test cross-border interoperability through an e-CNY pilot project conducted in Hong Kong.
Beijing can also ask use the digital yuan to fuel his “petroyuan” projects.. These projects aim to create an alternative to replace the US dollar in the oil market. According to the Financial Times, dedollarization is already well underway Russia and in China, where gold purchases peaked in 2022.