According to a survey by a Swiss Wallet provider, the adoption of cryptocurrencies in Russia is low. As of July 2022, nearly 2/3 of the country’s population said they had never used cryptocurrency. Unfortunately, this is not the only worrying figure in this survey. Russia, which has been facing major economic sanctions for the past few months due to the invasion of Ukraine, has a vested interest in seizing the opportunities offered by cryptocurrency.
Russians invest less in crypto
Tangem, a Swiss-based provider of cryptocurrency wallets, conducted a survey in July on cryptocurrency adoption in Russia. The survey was conducted online among 2,100 people in several cities in Russia.
The results reported by a Russian media reveal a rather timid adoption of crypto and a knowledge deficit on the subject.
In fact, 72% of respondents claim to have never bought cryptocurrencies. Of the 28% of crypto investors in the country, only 23% said they buy crypto at least every month. The remaining 5% of investors, meanwhile, stopped buying cryptocurrency after the first purchase.
The decision to invest in cryptocurrency in Russia is driven by various motivations.
68% of investors surveyed by Tangem say they bought the crypto to better understand the asset (68%).
Other investors are motivated by saving funds (22%), diversifying investments (19%), paying for services or goods (18%), protecting themselves against inflation and exchange rate fluctuations (16%) and trading on the stock market (16%).
The survey also reveals the level of trust Russians have in Cryptocurrency. According to the survey, only 45% of respondents claim to be optimistic about cryptocurrency. Out of the remaining 55% respondents, 9% claim to have a negative opinion about cryptocurrency. 46% of them claim to be neutral on the subject.
Why the low adoption of cryptocurrency in Russia?
The survey conducted by Tangem provides some insights into the causes of low cryptocurrency adoption in Russia.
The low level of education about cryptocurrency is a major hindrance to the adoption of digital currencies in the country. In fact, 80% of the people interviewed by Tangem said they only knew the word cryptocurrency. Only 6% of respondents claimed to have a good knowledge of it.
However, the low level of knowledge about cryptocurrency among Russians is not the only cause of the low adoption of the digital currency in the country. According to Sergey Mendeleev, the CEO of InDeFi, the risk of banks blocking funds and the lack of an official platform for buying and selling the cryptocurrency are deterring potential investors. He estimates the number of cryptocurrency users in Russia at less than 1% of the country’s population.
A positive outlook in sight
Although cryptocurrency adoption is currently low in Russia, it could rise in the coming days.
Indeed, 31% of those surveyed by Tangem said they plan to buy the cryptocurrency in the next six months. On the other hand, almost as many respondents say they have no interest in buying the cryptocurrency. 40% of interviewees are still unsure about a potential purchase of the cryptocurrency in the near future.
On the other hand, the economic sanctions imposed on Russia following the invasion of Ukraine by its troops are pushing more and more citizens to use cryptocurrency in the country. If the sanctions continue for even longer, which they likely will, cryptocurrency adoption could benefit.
Indians have understood this, they are massively adopting cryptocurrency which they see as the future of finance. The Russians, who are also facing economic sanctions, have a vested interest in cryptocurrency. Iran has understood this and is already going on the offensive.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.