More than 21% of crypto asset owners from the CIS countries use digital currencies to pay for goods and servicesfollows from a survey of the Binance crypto exchange. In Russia, it is forbidden to use them as a means of payment, but abroad, a number of companies have already begun to accept crypto on a par with fiat moneyexperts said. They added: Russians thus mainly pay for computer games, applications, living and studying abroad, as well as real estate. Wherein the Central Bank sees significant risks of free circulation of cryptocurrencies for citizens and financial stability.
Every fifth owner of cryptocurrencies in the CIS uses digital assets to pay for goods and services, can be seen from the results of a study of the largest cryptocurrency exchange Binance. A survey of users from neighboring countries was conducted on the platform, more than 11 thousand customers took part in it. Most investors only store cryptocurrencies: this option was chosen by 41% of respondents. Another 21% of respondents use crypto assets for trading, 9% – as passive income, and 6% – for further withdrawal of funds into fiat currency. The remaining 2% chose a different use case.
Besides, almost every third exchange user from the CIS countries was engaged in miningfollows from the survey.
Photo: cryptonewsherald/Alexey Maishev
Many consider cryptocurrency solely for investment, but more and more companies use such assets as a current means of payment., said the regional director of Binance Vladimir Smerkis. He added: crypto payment is already available on the websites of many organizations in different countries. Among them are software development companies. Shopify and Microsoft, a chain of fast food restaurants KFC and coffee houses Starbucks, as well as, for example, Travala booking servicein which you can pay for tickets and hotel accommodation with digital currencies.
International payment systems Mastercard and Visa are also engaged in the release of pilot projects with digital currencies, said the expert. In partnership with crypto services, they issue cards that can be replenished with digital currencies and paid in dollars and euros.
About 25-30% of Russian cryptocurrency owners actively pay for purchases with them, confirmed the founder of Anderida Financial Group Alexei Tarapovsky. According to him, in large cities this figure even exceeds 30%. The owners of digital assets from Russia most often pay with crypto for computer games, applications, electronics, real estate and premium goods, such as cars. It is also popular to pay for studying abroad and staying in hotels.added the expert. He noted: for such payments, bitcoin or the second coin by capitalization, Ethereum, are most often used.
Photo: Global Look Press/Cfoto
Opportunities to use digital assets to pay for goods and services increase when cryptocurrencies rise in price, said Leonid Delitsyn, an analyst at FG Finam. According to him, during such periods, sellers are willing to experiment and take risks, but the situation partly changes when the value of coins falls. Debit cards, whose owners replenish the account with crypto and pay with fiat money, are also gaining popularity, but against the backdrop of bankruptcies of crypto projects, investors are also losing their savings. Due to this, the demand for such cards may now slow down, the expert believes.
Since the beginning of 2023, the Bitcoin exchange rate has increased by 44%. On February 17, the price of the coin exceeded $25,000 for the first time since August 2022. The “crypto winter” ended when the quotes of the main cryptocurrency exceeded $22.5 thousand, BitRiver said. The company representative added: if the rate of strengthening of the coin continues, the price will reach $30,000 by mid-March.
According to the law
Paying with cryptocurrencies for goods and services is prohibited by law in Russia, emphasized Oleg Ogienko, Director for Government Relations at BitRiver. He added: CIS countries also do not yet recognize such assets as a means of paymentwhile the issue of buying and selling digital currencies is now at varying degrees of regulation in these states.
Photo: Izvestiya/Zurab Javakhadze
The Bank of Russia does not support the free circulation of cryptocurrencies, reported the press service of the regulator. They added: with a high degree of probability, the legalization of operations with crypto will lead to risks for the welfare of citizens and the stability of the financial system. The value of such digital assets is extremely volatile. In addition, international practice shows that cryptocurrencies are often used for speculation and fraud in trading, which can lead to the loss of a significant part of citizens’ investments, the press service of the Central Bank emphasized.
The Bank of Russia conceptually supported the bill on miningthe regulator said. The document, among other things, restricts transactions with cryptocurrencies obtained as a result of mining. Such assets should be sold only using foreign infrastructure, the regulator stressed.
Photo: cryptonewsherald/Alexander Kazakov
In November, the bill on mining was submitted to the State Duma, but it has not yet passed the first reading. It can be adopted in February 2023, Anatoly Aksakov, chairman of the State Duma committee on the financial market, told cryptonewsherald earlier. According to him, already now thousands, if not tens of thousands of people are employed in the field of cryptocurrency mining, and many of them would like to legalize their business.
The introduction of mining into the legal field and the establishment of a balanced taxation will bring certainty to this area, says Oleg Ogienko from BitRiver. According to him, this will stimulate institutional investment in the industrial mining sector, provide additional revenue to the budget, indicate the right signals for citizens and create new jobs in Russian regions.