Cryptocurrencies have become a hot topic in the ongoing political conflict between Ukraine and Russia. While Ukraine is receiving crypto donations from all over the world, many believe Russia will join this trend. This claim is supported by the fact that economic restraints have been put on Russia by several global economies. In contrast to these claims, the total cryptocurrency volume traded using rubles has plunged to 50% from last week’s numbers. These numbers debunked the claims of many about cryptocurrencies being used for facilitating the plans of Russia.
According to statistics derived from blockchain data-collector, collateralizing these digital assets using Russian Rubles has dropped significantly since last week. Last Thursday, the trading volume of crypto through rubles dropped $34.1 million. This surprising number appeared just after a couple of weeks since the volume reached $70.7 million on the 24th of February. This marks a 50% decrease in the trading volume while refuting the claims of Russia leveraging cryptocurrencies.
The global policies against Russia were expected to collapse its economy and push Russians to take refuge in crypto. So, when Bitcoin regained 15% last week, many believed that it was a repercussion of Russians holding cryptocurrencies amidst uncertain conditions. As per new data, analyst Alex Saunders from Citigroup believes that the demand was created by investors who entered the market anticipating a hike. On the other hand, Russia had very little to do with the new demand, given the significant fall in trading volume recently.
Regardless of these numbers, powerful economies, including the United States of America and the European Union, still believe that crypto is the only way for Russia to circumvent its sanctions. They are directing a significant interest towards further tightening the measures taken against the communist nation. Not so long ago, the state of New York drafted drastic measures to support this cause. NY’s Governor Kathy Hochul gave the executive order to terminate all kinds of support and assistance given to Russia. This solidarity was announced as the state holds one of the largest Ukrainian populations in the country.
Jake Chervinsky from the blockchain association considers that these claims are “totally unfounded.” In his tweet, he clearly stated that Russia could not use cryptocurrencies for its military operations. Given the public nature of these assets, it will significantly expose the country’s plans. There is also a misunderstanding of how cryptocurrencies operate and markets work, he added. Ari Redbord from TRM Labs also claims that it is too late for Russia to use cryptocurrencies now. Given the dedicated monitoring communities of cryptocurrency, it would also not be the wisest choice in a time of war.