Following this year’s increase that followed the invasion of Ukraine, interest among Russian users in hardware wallets that offer cold storage of cryptocurrencies is dwindling. A study mentioning important markets claims that the sales volumes for these devices have nearly been slashed in half.
Russians’ demand for cold storage wallets declines following a springtime increase
Russian stores who sell hardware bitcoin wallets are currently overstocked, according to market participants who spoke with the leading business publication in the country, Kommersant. This is because earlier this year, when Moscow decided to intervene militarily in the neighboring Ukraine, demand for these products skyrocketed.
Many Russians looked to purchase a cold storage device in the spring due to the rising number of sanctions related to the Ukraine situation and the Bank of Russia’s currency limitations. When some Russians relocated abroad, they also took their cryptocurrency savings.
According to data, hardware wallet sales on the Ozon and Wildberries markets topped 16.5 million rubles (more than $275,000) in May, setting a new high. In August, the money fell to fewer than 8 million rubles (about $135,000), a 50% reduction.
According to a representative for Ozon, known as “the Amazon of Russia,” the number of things sold increased more than five times in the first half of 2022 compared to the same period last year.
Sales peaked in March, according to the online retailer M.Video-Eldorado. Citilink, an online tech retailer, debuted a Tangem hardware wallet at the end of June, and sales reached their high in July.
The decline has occurred as a result of the Central Bank of Russia reducing its restrictions on international money transfers, according to Roman Nekrasov, the founder of the ENCRY Foundation, which represents IT companies providing services to the blockchain and IT industries. The specialist added that “those who wanted to shift assets abroad, most certainly have already done so.”
The use of cryptocurrency wallets is not prohibited in any way by existing Russian law because cryptocurrencies have not yet been fully regulated, according to the report, which quotes Pavel Ganin, a partner at the law firm A.t.legal. Hardware wallet demand will increase again as the cryptocurrency markets mature, according to Aaron Chomsky, head of the investment section at ICB Fund.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/10/25/sales-of-hardware-crypto-wallets-decline-in-russia-with-easing-currency-restrictions/