Bank of Russia goes crypto – What you need to know – Cryptopolitan

The Central Bank of Russia (CBR) has announced that it has included crypto asset holdings of households in its latest survey of consumer finances, revealing that Russian families keep more money in cryptocurrency wallets than in gold investment accounts or mutual funds.

The report, which covers the period of 2022, also shows that the median average of the fiat value of crypto holdings among Russian households that possess such assets is 17,500 rubles (around $225 at current exchange rates). This means that over half of these families have more crypto funds than the cited threshold.

Russia’s survey details

The survey was conducted among over 6,000 households and more than 12,000 individuals in 32 Russian regions. 70% of the respondents were polled in the period of May to June 2022.

The researchers established that a little over 65% of the households had financial assets, with the median amount being 15,700 rubles (approximately $200). 64.5% of them keep money in bank accounts, with a median average of 15,000 rubles.

Only 0.4% of the surveyed families have made investments in cryptocurrencies, while a larger number invested in shares in mutual funds or investment accounts for precious metals, 0.3% in each case.

Around 1.6% of the households in the CBR study store value in stocks and bonds, with a median average of 26,500 rubles, and 1.2% of the respondents have declared having electronic wallets hold a median average of 1,000 rubles.

These findings demonstrate the growing interest in cryptocurrency among Russian households, as they explore alternative investment options beyond traditional assets.

The latest report by the CBR comes at a time when economic powerhouses are increasing their efforts to distance themselves from US dollar hegemony.

According to reports, a top Russian official has claimed that the BRICS alliance is working on creating its own currency. BRICS is an acronym for five leading emerging economies: Brazil, Russia, India, China, and South Africa.

New world order

State Duma Deputy Chairman Alexander Babakov reportedly made the comments at the St. Petersburg International Economic Forum event in New Delhi, India.

Babakov stressed the importance of both nations working towards a new medium for payments, adding that digital payments could be the most promising and viable. He also said that the currency could benefit China and other BRICS members, and not the West.

“Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S.’s dollar or euro but rather forms a new currency competent of benefiting our shared objectives,” Babakov said.

He also reportedly postulated that the new currency would be secured by gold and other commodities such as rare-earth elements.

Former Goldman Sachs chief economist Jim O’Neill has also called on the BRICS bloc to expand and challenge the dominance of the dollar. In a paper published in the Global Policy journal, he wrote that “the U.S. dollar plays a far too dominant role in global finance.”

The Central Bank of Russia’s survey results show the growing interest in cryptocurrency as an alternative investment option among Russian households.