Training on modelling fundamentals December 17–18

Cryptocurrency holdings concentration in Russia offsets risks for the national financial system

Cryptocurrency market and financial stability in Russia

  • Cryptocurrencies perform none of the money functions in full scope yet. Volatility in crypto markets is high and comparable to price movements in the food commodities (the most volatile of all markets), which disqualifies cryptocurrencies as a means of payment.
  • According to ACRA estimates, market capitalization of cryptocurrencies and cryptocurrency holdings in Russia amounted to USD 7.5–14 bln, or 1–2% of M2 money supply, in 1Q2018. In addition, the entire volume is held by the small number of owners, which offsets the risks for the Russian financial system. If cryptocurrencies were as popular among Russian residents as foreign currencies, the volatility demonstrated by cryptocurrencies would affect the Russian economy’s stability.
  • The interest rate on internal borrowings may periodically increase by 1 ppt on the typical volatility of cryptocurrencies, in case the amount of cryptocurrencies in the debt of residents (corporates and sole entrepreneurs) becomes as high as RUB 4…

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To clarify the cost and terms of payment, please contact Artem Mayorov

phone: +7 (495) 139 04 80, доб. 147, email: artem.mayorov@acra-ratings.ru

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