Ruble-denominated Bitcoin volumes recently rose to a 9-month high as sanctions on Russia led to moving away from the ruble.
The war attack by Russia against Ukraine has destabilized the Russian financial system. The fiat currency of the Eurasian nation plummeted following the announcement of sanctions by the European Union and the United States.
The exclusion of some Russian banks from the SWIFT International Interbank Communications System has affected them. Besides, the freezing of transactions with the Central Bank of Russia (BCR) has affected the financial system of Moscow.
The president of Russia, Vladimir Putin, commanded the nuclear deterrence force of the country to be on high alert. A report from the Russian Central Bank requested brokers to ban selling securities to non-resident investors.
The Trading Volumes between the Ruble and Bitcoin Increase
The trading volumes between the ruble and Bitcoin have risen to 9-month highs. The fiat currency of Russia plummeted to record lows due to the impact of the invasion of Ukraine.
Data from Kaiko indicates that ruble-denominated Bitcoin volumes increased by almost RUB 1.5 billion RUB.
Clara Medalie, a research analyst from Kaiko, said that the activity primarily concentrated on Binance. She added that the Bitcoin-hryvnia volume also soared but not as high as in October.
The analyst noted similar trends regarding the Tether-ruble and Tether-hryvnia trading volumes.
USDT Hits a New All-Time High against the Fiat Currency of Russia
The stablecoin Tether (USDT) has undergone a rise of more than 30% against the Russian ruble in five days. That shows the negative and immediate impact of the war between Russia and Ukraine on the traditional financial system.
The data from Kaiko also showed that the USDT/RUB trading volume rose to an eight-month high of RUB 1.3 billion.
The West Imposes Measures against Russia Due to the Conflict
The war in Ukraine led to a unanimous response from the West, which imposed harsh economic sanctions against Russia. Of course, that situation is a problem for Russia, its companies, and its citizens.
Besides the problems caused by those economic sanctions, the price of the Russian ruble has dropped. That causes companies in the Eurasian giant to lose about half of their value on international stock exchanges.
The United States and its allies took measures against Russia to prevent their banks from accessing the Society for Worldwide Interbank Financial Telecommunications (SWIFT). Likewise, the European Union banned all transactions with the Central Bank of Russia.
In addition, they will freeze all transactions with assets of the Russian central bank, making it impossible for the institution to liquidate them.
Ukraine to Give Cryptocurrencies to Russian Soldiers Who Surrender
Masha Efrosinina, honorary ambassador of the United Nations Population Fund, said Ukraine would give 5 million RUB worth of cryptocurrencies to Russian soldiers who surrender.
The Ukrainian TV host stated that soldiers who surrender would receive about USD 45,000 worth of cryptocurrencies or fiat money.
By Alexander Salazar
