Bitcoin Demand Explodes As Russian Ruble Collapses to Less Than $0.01
Categories: Bitcoin
The imposition of sanctions, elimination of Russia from SWIFT, European Union’s ban of Central Bank’s transactions is already beginning to affect the country’s economy.In less than 24 hours after the US announced its sanctions and the decision of removing Russia from SWIFT, Ruble tumbled. Russia Loses Ruble’s Value One Ruble was worth about 1.2 cents or $0.012 until a few hours ago. Then, however, due to the invasion of Ukraine worsening and considering the response from the world, its value fell.Plunging by a mind-boggling 21.29% is currently worth less than a cent at $0.009.The broader impact of this fall of value is that the Central Bank raised its key interest rates. In addition, as the Ruble’s value collapses, Russia is taking steps to avoid hyperinflation.And for the same reason, the Bank raised its interest rates on deposits to 20%, which is higher than most of Russia’s securities and stocks. Furthermore, the Bank is looking into ways to fight the ban and elimination from SWIFT.Since the country cannot access any of its 14 trillion Rubles and the $1.1 trillion forex reserves, it is looking at another way. Incentivizing investors with a 20% interest rate is a step in that direction.Thus to save money, as predicted by FXEmpire, the citizens have officially begun to turn to crypto. Data from Coindesk – Kaiko shows that over 1.5 billion Rubles worth of Bitcoin in Rubles pair was traded in just 24 hours.