ForexMinute.com – Despite its “illegal” status in Russia, transaction volumes between the Bitcoin and Ruble encountered a sudden surge on Tuesday, possibly in the wake of the latter’s meltdown in the international markets.
The Ruble continues to remain in a selling range, as the oil prices slump weighed in on the currency. It fell 11-12% against the USD on Tuesday, while a rather stronger Bitcoin offered an alternative for better returns. Other than the decentralized cryptocurrency, the euro, the yen, sterling also reported higher volumes in their trades against the Russian currency.
The entire finance sector is eyeing the collapse of the Russian economy, which has remained bearish all over this month in the wake of weaker oil rates and political boycotts of the west. The Central Bank earlier sanctioned an aggressive interest rate hike – from 10.5% to 17% – that inspired a short-term recovery of the Ruble, only to see a steep fall in the latter part of the day.
“The news coming out of Russia is indeed unparalleled,” Bobby Lee, the co-founder and CEO of prominent Chinese bitcoin exchange BTC China, told CNBC. “The high trading volumes with the ruble is to be expected, given the flight away from this struggling currency. Bitcoin is therefore a natural destination, as well as other strong central bank currencies.”
The Russian government meanwhile is in no mood to treat Bitcoin as its temporary harbor, thanks to its previous rulings against the cryptocurrency. The finance ministry however today announced to sell its foreign currency stock to save the undervalued Ruble, which seems like a mature move at this point of time.
To contact the reporter of the story: Yashu Gola at email@example.com