As western sanctions put pressure on Russia’s economy, many young Russians see cryptocurrency as a “reliable” and “profitable” investment option. A recent survey found that two-thirds of Russian citizens are aware of bitcoin.

Russians Under Sanctions May Consider Buying Property, Gold and Crypto

The economic situation in Russia is already being affected by financial and other sanctions imposed on Moscow for its decision to invade Ukraine. Despite these grim prospects, property and gold are still the most sought-after investments for many Russians.

The share of those who regard the purchase of real estate as the most reliable investment has been declining in the past few years but it’s still 33% in 2022, the Russian analytical center NAFI revealed in a new report. And 36% of the respondents in its study believe it’s the most profitable option.

At the same time, gold has been gaining recognition and 25% of Russians now think investments in the precious metal are reliable, compared to 21% two years ago. Investors who see future profits in gold have increased from 18% to 26% during the same period.

Accumulating and keeping paper cash has also become more common among Russians, 23% of which now consider this method of storing value reliable, an increase from 15% in 2020. Opening a deposit account with a state-owned bank is safe according to 21% of the participants in the survey.

The popularity of cryptocurrency has increased significantly in the last years, according to NAFI researchers. Two thirds of the respondents in their latest poll (67%) have heard about bitcoin while five years ago this group accounted for only 16% of the questioned.

The majority of Russians believe that cryptos will increase in value over time. Currently, 8% view the acquisition of crypto assets as a reliable investment, while 11% think buying digital coins is profitable. Young people, aged 18-24, are even more optimistic. A quarter of them have described crypto investments as reliable (23%) and profitable (24%).

As governments supporting Ukraine continue to widen restrictions limiting Russia’s access to the global financial system, concerns have been raised that Moscow may use cryptocurrencies to evade sanctions. While some crypto platforms have imposed restrictions, major exchanges like Binance and Kraken denied a request by Kyiv to unilaterally freeze the accounts of all Russian users.

Meanwhile, Russian authorities are proceeding with efforts to legalize crypto operations. A draft law “On Digital Currency” was submitted by the Finance Ministry last month. A member of the State Duma working group on crypto regulations suggested this week that digital assets can help Russia reach the global financial market, despite the sanctions.

Do you think more Russians will turn to cryptocurrency if the economic situation in their country worsens further? Let us know your thoughts in the comments below.

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