This week, the Russian ruble crashed for a second time in less than three months. The country’s currency fell more than 30 percent against the U.S dollar and its value is now hovering below $100 on most major exchanges around the world as Russia continues to rely heavily on oil revenue to run their economy.
The “russian currency” is the official currency of Russia. It has been experiencing a significant drop in value following the recent SWIFT cutoff. The Russian ruble is now worth less than 15% of what it was worth before the cutoff.
After the Russian fiat currency crashed due to geopolitical events after the invasion of Ukraine, Bitcoin has surpassed the Ruble. To combat a plummeting Ruble and avert a bank run, Russia’s central bank is boosting its key rate.
A sequence of geopolitical developments in Bitcoin’s favor have catapulted the world’s most popular cryptocurrency into the global financial system’s upper echelon. After a spectacular fall of the Russian Ruble to lows not witnessed in the previous 30 years, BTC has now surpassed the Russian Ruble in the worldwide list of currencies with the highest capitalisation.
Due to a series of sanctions imposed by Western nations in response to Putin’s decision to invade neighboring Ukraine, the Russian fiat currency has lost a substantial amount of value versus the US dollar and Bitcoin. Major Russian banks have been shut off from SWIFT, the international payments messaging system, as part of the sanctions.
BTC has risen above the Mexican peso and the Thai baht in terms of capitalisation.
Economic sanctions were imposed quickly on the Russian economy, as residents feared a bank run. Russian residents have been flooding local ATMs with cash withdrawal requests, despite the Bank of Russia’s plea for calm. The spike in Bitcoin’s price has coincided with the escalating violence in Ukraine, as Russian military forces continued their approach into Kyiv, the country’s capital.
The happenings in Russia coincided with an almost 15% recovery in Bitcoin’s price over the last 24 hours, BTC has risen above the Mexican peso and the Thai baht in terms of capitalisation. later on. The ongoing surge has now placed Bitcoin among the top 15 most valuable currencies globally, surpassing countries like Israel, Saudi Arabia, and Sweden, among others.
Ukraine demanded that bitcoin exchanges prohibit transactions involving Russian citizens yesterday. WISE has already ceased services in Russia, despite the fact that most of the major exchanges have refused to take drastic actions.
Russia may reap the benefits.
The crypto community has taken note of the Ukrainian issue, which has grabbed headlines as the conflict worsens. The international world has typically come out in support of Ukraine. The Ukrainian government has received almost $22 million in Bitcoin, Ether, and USDT contributions after launching an official call for help.
The Ukrainian government has made a Bitcoin address public so that contributions may be made instantly and without fear of censorship. Even if Ukraine gains, there is a risk that Russia may profit as well. Because Bitcoin is a neutral currency, reports show that Russians are using it to hedge against currency depreciation.
