Not hot, but cold: demand for hardware crypto wallets jumped in Russia | Articles

Demand for hardware crypto wallets (in the form of flash drives or plastic cards) jumped in Russia. Market players told cryptonewsherald about this. Experts attribute the trend to the distrust of Russians in foreign crypto exchanges, the strengthening of sanctions restrictions and the growth of the bitcoin rate. An important role, in their opinion, is played by the news about the imminent launch of the digital ruble into circulation. At the same time, M.Video – Eldorado said that they did not notice sharp changes in consumer interest.

Anonymity guaranteed

Over the past month, Russia has recorded a significant increase in demand for hardware crypto wallets among domestic users.. cryptonewsherald was told about this at RBS Crypto Labs.

The explosive growth is associated with the ongoing sanctions pressure, the instability of traditional investment instruments, currency restrictions, and the increase in the cost of well as an insufficiently high level of information security and the safety of personal data on well-known crypto platforms,” explained Sevil Baer, ​​the founder of the company.

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Hardware crypto wallets are called “cold wallets” because they work offline. Connection to the network is required only at the moment when the user needs to make an operation to withdraw digital currency.

In turn, the “hot” ones are constantly (or very often) connected to the network and work online.


Photo: RIA Novosti / Viktor Tolochko

She thinks that an important role is played by the news about the imminent launch of the digital ruble into circulation. Although it is not a cryptocurrency in the direct sense, it still popularizes such topics. In the near future, we should not expect a decline in interest in hardware wallets, Sevil Baer is sure.

M.Video – Eldorado told cryptonewsherald that do not note sharp changes in consumer demand for “cold” devices for storing digital currency relative to the beginning of the month or the past year. Ozon and Wildberries did not respond to a request. Wherein prices for hardware crypto wallets are decliningwhich is associated with an increase in the market volume, added Tangem AG (operates in the field of blockchain, including such devices).

flash drive

Photo: TASS/Artem Geodakyan

After the introduction last year of restrictive measures from the Central Bank regarding the purchase and circulation of foreign currency the steady growth of the interest of Russians in cryptocurrencies remains, said Ivan Fedyakov, General Director of INFOLine news agency. In the early spring of 2022, the Central Bank banned withdrawals of more than $10,000 from an account if it was opened before March 9.

– Exactly hardware crypto wallets allow you to make the owner absolutely anonymous, no one will know what country he is from, what citizenship he has. This allows the Russians, under restrictions hope that the funds withdrawn in this way will not be frozen. Any other scenario threatens the risk of blocking money– Ivan Fedyakov explained.

Sevil Baer names another advantage of “cold” wallets – you can work with them offline, without going online, which provides additional protection against leakage of data and funds.

niche product

Bye it is impossible to talk about some kind of mass acquisition of hardware crypto walletsbecause they are of interest to a limited segment of people, says Denis Kuskov, CEO of TelecomDaily. The current growth in demand, in his opinion, was provoked by restrictions on crypto exchanges for Russians – in recent months, limits have been introduced on the size of accounts, a ban on the purchase of dollars and euros through the P2P service, and access restrictions. Among other reasons – the emergence of a sufficiently large number of different options for devices for storing digital currency at affordable prices.


Photo: cryptonewsherald/Alexander Kazakov

Against the background of the growing interest of Russians in cryptocurrency it is necessary to adopt laws in this area to protect Russians from unfriendly actions of foreign statesOleg Ogienko, director for government relations at BitRiver, is sure.

In particular, according to him, need to legitimize mining, launch the circulation of such currencies (creation of at least three platforms for the purchase and sale of digital money in Russia) and establishing taxation features, as was done for digital financial assets.

According to Tangem AG, Russian interest in hardware crypto wallets soared by 89% in the week of April 11-16 compared to the previous one.

The spring increase in demand for the product coincided with the adoption of the law on electronic subpoenassaid the source of “cryptonewsherald” in the market.

Since the end of 2021, a draft law on the legalization of mining is being prepared in Russia. The explanatory note to the document, which was prepared in 2022, said that when receiving a digital currency, the user must inform the authorities about it. Legislative consolidation will allow you to legally receive cryptocurrency, declare income and pay taxes. Due to the need for additional approval consideration of the document was postponed to 2023.

In the first quarter of this year, the cost of bitcoin increased by 72%, from $16.5 thousand to $28.4 thousand. One of the main reasons for the rise in price investors’ concerns about the banking crisis in the United States, Leonid Delitsyn, an analyst at FG Finam, told cryptonewsherald earlier. Also, the digital currency market is affected by the situation in the global economy, the rate of the Federal Reserve System, the possible tightening of market regulation, as well as a series of stock exchange bankruptcies. The end of the crypto winter is another reason why interest in digital currency will grow again.


Photo: TASS/dpa/Silas Stein

Despite the influence of negative factors, according to the forecasts of analysts from the Brandessence agency, about $1328.7 million will be stored on hardware wallets by 2028, the average annual growth rate will be about 27%.

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