Russian Central Bank Grasps Bitcoin for Foreign Payments
Russian central bank grasps Bitcoin for foreign payments – Tough U.S. sanctions on Russia followed the Russia-Ukraine war. This made it difficult for the country to conduct international trade. Russian banks were also removed from the SWIFT banking system. This makes it even more challenging to carry out cross-border transactions. So now, the Central Bank of Russia, which has no other way, has succumbed to pressure; Holds Bitcoin for international payments. Yes, you did not. This is the same bank that recently implemented an absolute ban on cryptocurrencies and mining.
A senior central bank official has confirmed that Russia now allows the use of BTC for international trade. Since Bitcoin is decentralized, it will make it easier for Russia to circumvent U.S. sanctions. U.S. authorities were at one time concerned that crypto was being used to solve their sanctions, and this has become true. However, all this is not positive. Officials still believe that the use of bitcoin poses a tremendous potential risk to Russia.
While Russia’s deputy central bank governor says they have no objection to cryptocurrencies for international payments, she also makes critical remarks. Ksenia said they still believe that the use of cryptocurrency poses a considerable risk to Russia’s financial infrastructure and citizens and consumers.
Inflation and Bitcoin – Crypto Future
This is not the first time the central bank has made critical remarks about Bitcoin and crypto. They have repeatedly launched a ban on bitcoin mining; The government did not accept this. Russia is one of the largest BTC mining countries. So if the ban is passed, it will have a significant impact on the BTC hash speed.
The government has projected a bill to control crypto and BTC in the country. The idea is to take a stand on cryptocurrency, which the whole world is now trying to regulate. So they need to determine what position they should take. Now, as the central bank no longer demands a ban, It is expected that the government and the bank’s government will work together on the regulation.
High inflation has often had an impact on cryptocurrency adoption. When people have a lot of money, they invest in cryptocurrency. Or when they have less money but high inflation pushes them towards higher incomes. Many investors often perceive Bitcoin as a safeguard against inflation. Despite the variability, he has proven experience in delivering high pay for a long time. This makes currency an attractive investment option for those who want to take the risk of earning a higher income.
There are currently no relevant regulations for all EU countries. Therefore, the securities regulator has requested a framework to comply with all EU countries’ rules and regulations. This is necessary because when more people invest in cryptocurrency, they will need to protect those investors. Experts report future depression, stocks, and bond collapse. If such a thing happens, it will be an even more important driving force for cryptocurrency adoption. So it is clear that the government needs to work on regulations.
Conclusion
Bitcoin slowed down late Tuesday afternoon and retreated from local highs to $31.5K. Ethereum has lost 2.5% in the last 24 hours, reaching $1,930. The total market capitalization of cryptocurrency decreased by 1.3% overnight to $1.30 trillion. The bitcoin dominance index increased by another 0.3%, to 46.3%. The cryptocurrency fear and greed index rose 1 point on Wednesday; Eventually, it reached 17.
Institutional investors reportedly invested $87 million in cryptocurrencies last week; This has reached $0.52 billion since the beginning of the year. Most HODLers continue to establish positions in Bitcoin. A possible signal of the end of the bear market could be the capitulation of long-term investors; Who sold BTC last week at an average loss of 27% compared to the moment of purchase quotes.
Bitcoin ended May with 17.1%, which did not meet historical trends, Which indicates a relatively successful month. The crypto market was negatively affected by the collapse of the Terra ecosystem. In the last month, the Luna Foundation Guard sold 80,081 BTC UST to support a stable currency.
June is considered relatively successful for BTC. In the last 11 years, Bitcoin has ended the month seven times and decreased four times. The average increase was 16.7%, While the average drop was 11.3%. In the first case, BTC could end June at around $37,000, which compensates for almost every drop in May, And in another, June could end at $28,200.
