Russia is in a leading position in Europe's cryptocurrency market.

Russia's Crypto Transaction Volume Breaks Records

According to data published by Chainalysis, as of July 2023, Russia has become the largest crypto market in Europe in terms of transaction volume. During this period, the total volume of cryptocurrency transactions in the country reached $376 billion. This figure represents a significant increase compared to the $273 billion transaction volume in the UK.

The Importance of Cryptocurrencies and Their Use Cases

While evaluating this situation, experts emphasize that cryptocurrencies in Russia have gone beyond being merely speculative investment instruments and are increasingly becoming an active payment method within the business world and among individuals. Aleksandr Krayko, chief analyst at Tsifra Markets, noted that the trading-focused era of crypto assets has ended, and a significant portion of transactions are now occurring through cross-border transfers.

The Path to Becoming a Regional Financial Hub

Krayko stated that Russia could become a regional financial hub for crypto-based commercial transactions, particularly with Asian and Middle Eastern countries. This indicates a maturation in the cryptocurrency market and an increase in the level of acceptance.

The Impact of Sanctions and Stablecoin Usage

Alena Nikolayeva, portfolio manager at Astero Falcon, mentioned that the reasons behind Russia's rise to the top of the European crypto market are complex. She emphasized that Western sanctions have forced the country to develop its own crypto infrastructure. Nikolayeva reported that the volume of large-scale transactions has increased by 86% and that the ruble-indexed stablecoin A7A5 has become the primary tool for cross-border payments.

These developments have enhanced companies' capabilities to overcome restrictions on the dollar and euro. Experts estimate that 9 million people actively hold cryptocurrencies in Russia, and 20 million people have conducted at least one crypto transaction in their lives. It is noteworthy that the younger generation has begun to adopt cryptocurrencies not just as an investment tool but also as a means of saving and international payments.

Especially in the first four months of this year, transactions worth $9.5 billion were conducted through the ruble-backed A7A5 stablecoin, clearly demonstrating the scale of this transformation.