The Central Bank of the Russian Federation (CBR) recently published a report on household finances, revealing an increasing preference for digital assets among Russian households. The biennial report, conducted since 2013, shows that more Russians now hold funds in crypto wallets than in gold or mutual funds.
Growing Interest in Crypto Among Russian Households
According to the CBR report, the median fiat value of digital assets among Russian households with crypto holdings in 2022 was approximately $225 (17,500 rubles) at current exchange rates. This finding indicates that over half of these households have accumulated crypto holdings above this threshold.
The study involved more than 12,000 individuals from over 6,000 households across 32 Russian regions and found that more than 65% of households held financial assets. Bank accounts remained the most popular storage method for 64.5% of households, with a median amount of $191 (15,000 rubles).
Interestingly, the report revealed that only 0.4% of surveyed households had invested in cryptocurrencies. Although seemingly a small percentage, it is significant as it surpasses the percentage of households investing in traditional financial instruments like mutual funds or gold, each at 0.3%.
Diversifying Investments with Crypto
The growing interest in crypto among Russian households can be attributed to its potential for diversifying investment portfolios and acting as a hedge against inflation. In addition, as a relatively new investment asset, households have chosen crypto over established financial instruments, demonstrating a shift in investment preferences.
Russia’s approach to cryptocurrencies has been cautious, with the government neither banning crypto usage nor fully embracing it. However, in 2019, the Russian government passed the “On Digital Financial Assets” law, establishing a legal framework for cryptocurrency and blockchain technologies. This law laid out rules for the issuance and circulation of digital assets and the rights and obligations of their owners.
However, there are indications that the Russian government is becoming more open to digital assets. For example, the Central Bank of Russia has considered issuing a central bank digital currency (CBDC). Though the CBR recently postponed its plan to launch the CBDC for at least a few months, this move signals a potential shift in attitudes toward digital assets.
Crypto in the Russia-Ukraine War
Crypto has also proven valuable in funding military supplies and supporting displaced families amid the ongoing Russia-Ukraine war. The Ukrainian government raised millions from direct cryptocurrency donations. In addition, citizens turned to crypto as an alternative financial solution when banks failed.
The Central Bank of the Russian Federation’s latest report on household finances indicates a growing interest in crypto among Russian households.
Despite the country’s cautious approach to digital assets, the increasing preference for crypto investments over traditional assets like gold or mutual funds suggests a shift in attitudes and a potential for further crypto adoption in the future.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.
