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HomeCRYPTOCURRENCIESIncreased use of cryptocurrencies in Russia due to economic sanctions • ENTER.CO

Increased use of cryptocurrencies in Russia due to economic sanctions • ENTER.CO

After the White House announced last Sunday, February 27, the expulsion of “certain Russian banks” from the international SWIFT platform, the suspicions that the US had about the possible strategies that Russia could undertake once it began to be isolated of Western trade, began to become a reality.

According to the first advance of a report by the European Commission, since February 28, the trading volumes between the Russian ruble and the ‘stablecoin’, Tether, skyrocketed as a result of the economic sanctions that different countries have imposed on the last week and which, according to the news network, France 24, have led to the local currency devaluing by 28.34%.

The diagnosis of the European Union body agrees with the study by Arcane Research, a digital assets research firm based in Oslo, which identified that only last Monday, said operations between the ruble and Tether tripled compared to the week prior to the invasion of Russian troops in Ukraine, reaching US$29.4 million; that is, the highest level of trading reported so far in 2022.

What is Tether and why is it known as a ‘stablecoin’

A stable currency or a ‘stablecoin’, is a type of cryptocurrency whose value is generally backed by the money of a ‘fiat’ currency, be it the dollar, the euro, the ruble itself; or also in that of a material good. This kind of cryptocurrency exists to give investors greater security, in times of high volatility in the value of bitcoin.

For its part, Tether is a stablecoin issued on the Bitcoin blockchain by the company Tether Limited. Its value is equal to that of the US dollar and until 2021 it was considered “the largest stable cryptocurrency issued on the market”.

It may interest you: Binance will block Russian users penalized by financial sanctions

The use of cryptocurrencies is not only having a rebound in Russia during the last week, because in Ukraine they are also being used to finance defense and humanitarian aid in that country. According to reports from some media, the donations received in cryptocurrencies such as Binance Coin, Ether and Tether, have reached US$ 37 million in less than a week.

Images: voi.id

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