As the Western sanctions disrupt the Russian financial industry, the adoption of Crypto is experiencing a spike. According to a local media outlet, Vedomosti, the sale of Crypto wallets is rising sharply. The report analyses trends in the Ozon marketplace and M.video-Eldorado, where Russians buy wallets.
There are different types of Crypto wallets, such as hot and cold wallets. Hot wallets are available online, while cold wallets are designed as external data media. Wallets enable Crypto users to hodl, receive, and transfer tokens without the use of intermediaries. The alternative to cold wallets is custody services, which offer enhanced security, especially for high-net-worth digital assets.
The Disruption of Russia’s Financial System is Incentivizing Crypto Adoption
When the sanctions by the western countries came into effect, the Russian Rubble plunged to new lows. The Bank of Russia intervened and restricted transactions in foreign currency in a much-publicized stunt where even trade partners had to pay in Rubbles. Although the move stabilized the local currency, it disrupted cross-border payment, and Russians had to resort to Crypto for payment.
Consequently, there has been a surge in Crypto adoption, bringing about an increased need for Crypto wallets. For M.video-Eldorado, the Crypto wallet sales were unveiled in the fall of 2021. In the first quarter of 2022, the sales grew eight-fold. On Ozon, the spike in demand led to a sharp rise in shock levels, with a sixfold increase between January and June.
Crypto Wallets Are Improved, Affordable, and Accessible
While acknowledging the increased sales, Tangem, whose wallet resembles a bank card, reveals that the increase is due to multi-product availability. The tech firm has been able to design solutions for different needs, which appeal to a large clientele. On the other hand, Ledger offers a Crypto wallet designed as a USB Stick.
The wallets are available in different varieties, such as multi and single-currency options. They are also affordable, and users can purchase the products with convenience.
The Crypto Winter and Capital Flight from Russia Is Also Fueling the Trend
According to the CEO of Infoline Analytics, Mikhail Burmistrov, IT Specialists are leaving Russia and taking their savings with them. In the shortage of foreign currencies, they prefer to use digital assets hence the need for wallets.
Another reason for the surge in demand is the Crypto winter and the tumultuous Crypto market. According to Burmistrov, events such as the Terral LUNA UST crash and the Celsius issues have led to a fivefold spike in ledger wallet adoption at a global level.
In the meantime, Coinmarketcap data shows that the Crypto market is in the green after, with BTC trading at $20,301.78 at the time of press.