The
Independent
Bitcoin overtakes Russian Ruble
Anthony
Cuthbertson
Tue, 1
March 2022, 9:00 am·2-min read
https://uk.finance.yahoo.com/news/bitcoin-overtakes-russian-ruble-163718223.html
Bitcoin has
overtaken the Russian Ruble after a crypto market surge coincided with Russia’s
currency crashing.
The
cryptocurrency reached above $41,000 on Monday afternoon, according to
CoinMarketCap’s price index, having traded below $35,000 as recently as
Thursday.
The Ruble
fell by around 25 per cent in that same time period, dropping below $0.01 on
Monday to a new record low.
The fiat
currency’s crash came amid increased sanctions against Russia over its invasion
of Ukraine, with the West introducing restrictions for some Russian banks to
the SWIFT global bank payments system.
The latest
BTC price surge was partly fuelled by people exchanging Rubles to the
cryptocurrency, according to some market analysts, who said the cryptocurrency
served as a store-of-value during times of geopolitical and economic
uncertainty.
“In these
uncertain times, we have seen an uptick in the utility of bitcoin and other
cryptocurrencies,” Paolo Ardoino, CTO of the crypto exchange BitFinex, told The
Independent.
“It goes
without saying the defining characteristics of bitcoin allows it to act as a
safe haven during turbulent times.”
Earlier on
Monday, Russian crypto exchange BestChange.ru went offline, leading to
speculation that it was either the result of hackers, or due to a flood of
users attempting to buy bitcoin and other cryptocurrencies with Rubles.
In response
to Western sanctions, Russia’s central bank more than doubled interest rates to
20 per cent on Monday.
“External
conditions for the Russian economy have changed dramatically,” the Bank of
Russia said in a statement.
“An
increase in the key rate will make it possible to ensure an increase in deposit
rates to the levels necessary to compensate for the increased devaluation and
inflation risks. This will help maintain financial and price stability and
protect citizens’ savings from depreciation.”
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