- Cryptocurrency breaks into the top 5 most popular investment tools in Russia
- Gold has fallen in popularity to digital assets with investors
- Russia now has the second-largest cryptocurrency adoption rate in the world
The World Gold Council report on the last 12 months has shown cryptocurrencies account for 17% of Russian investments, nudging ahead of gold at 16%. The report released today details retail insights, pointing to the accessibility and popularity of cryptocurrencies, particularly Bitcoin, in Russia. Meanwhile, Gold lags behind other popular investments, such as foreign currencies and real estate, due to less visibility and mistrust.
The report was based on a survey of over 2000 ‘active investors’ in Russian cities. The top five investment tools in Russia were found to be: savings accounts, foreign currencies, real estate, life insurance, and cryptocurrencies.
The results counter received wisdom which regards gold a stable, reliable investment option and cryptocurrencies as potentially risky. The rise in popularity comes after the introduction of digital assets into Russian law. Soon after, as reported last week, Russia introduced strict laws on digital financial assets. Cryptocurrency has still not been legalised as a payment method. However, the state is making moves toward a ‘crypto Ruble,’ like the central bank digital currencies being developed by China, the USA, and Turkey.
The World Gold Council noted that ‘gold will need to respond’ if this shift continues next year. The clear interest being shown by investors in cryptocurrencies is an encouragement to those considering new digital investment portfolios in Russia. The report encouraged diversified product offerings, acknowledging ‘there is a desire for choice and appeal among retail investors.’
Recent data indicates Russia has been an eager adopter of cryptocurrencies, ranking second in the 2020 Global Crypto Adoption Index, below Ukraine and above Venezuela.