Paxful peer-to-peer (P2P) trading platform claims that Russians are reacting to the economic crisis caused by the coronavirus pandemic by gradually relying on cryptocurrencies and turning bitcoins into a means to stay safe and keep their funds covered despite the weakening of economic conditions.
Paxful records a spike in commercial activity in Russia
The pandemic had several negative effects on global markets. In the United States there has been a sharp increase in interest in BTC by a broad range of traders affected by the harsh economic conditions that the country is facing.
Coinbase and other exchanges for buy Bitcoinsfor example, they said many people are likely spending their stimulus funds in the cryptocurrency sector. Apparently, the same type of uncertainty and economic disorder is occurring in Russia.
In a statement, Paxful explains that Russian customers are probably turning to BTC to "fight inflation". Russia is still a relatively new region for Paxful - the platform only started dedicating time, energy and resources to residents of the country in late 2019 - yet the company claims to be seeing huge changes.
In an official statement, Paxful explained: "Along with the economic distress of the coronavirus, which has weighed heavily on its citizens, confidence in an alternative financial system has become more than evident within the region."
The company also said that trading that passes through its platform has increased by more than 350% from one year to the next (from 2019 to 2020) and that a large part of the activity comes from Russia and its citizens.
In detail, Paxful says: "Month-over-month (MoM) breakdown during the COVID-19 pandemic ... Paxful saw +50% MoM for May, +41% MoM for April, +34% MoM for March, with a average over the last three months of +42% MoM.
Each month was confirmed as the highest of all time, with July going beyond June and establishing itself as the highest month ever. In addition, there was an annual peak of 365% in new users over the same period.
Russia in search of its way to the crypto sector
Currently, it is not entirely clear what kind of policy Russia intends to apply on bitcoin and cryptocurrencies. The country has attempted to ban digital trading in the past, although Anton Kozlov - the manager of Paxful's Russian market - says that the Russian banking system is currently predominantly controlled by a small group of players and many standard customers are looking for it. of alternative ways to take control of their financial futures.
The fact that cryptocurrency can serve a noble purpose in the country creates a lot of trust. "Bitcoin, in the P2P context, allows them much more freedom to accomplish [this purpose] and our data are proving it," Kozlov concluded.
