Bitcoin’s total market value has surpassed that of the plummeting Russian ruble as speculation grows that the digital coin and other cryptocurrencies could help Moscow cushion the blow of international sanctions.
Russia’s invasion of Ukraine triggered a series of economic sanctions from governments around the world, sending the Russian currency plunging to record lows and raising the specter of hyperinflation.
Meanwhile, crypto trading has surged, with Ukraine calling for digital currency donations to support its war effort and raising more than $20 million so far, according to the report. blockchain analytics company Elliptic.
As of Tuesday, the market capitalization of Bitcoin in the world now exceeds that of the ruble, according to data from CoinMarketCap.
The Russian currency is currently ranked 17th in market value, behind the Thai baht and the Mexican peso.
The ruble weakens under the sanctions
Western allies sought to punish Russia for its attack with harsh financial sanctions, the exclusion of certain Russian banks from the SWIFT international payments system and the freezing of Russian central bank reserves.
Sanctions have sent the ruble to historic lows against the dollar and sent the Russian people queuing in front of banks to withdraw money.
As the value of the ruble falls and the risk of hyperinflation increases, the Russian central bank decided to raise its key rate to 20% on Monday.
As more Russians may now be tempted to convert their money into cryptocurrencies, Ukrainian officials have called on crypto exchanges to block Russian users and freeze assets linked to them.