Russians exchange crypto for cash on the street

That the economic situation in Russia is currently problematic will not be news. However, many Russian investors cannot access their cryptocurrencies, but some have found a solution. Russians exchange their crypto for cash on the street.

Hit severe sanctions inhabitants of Russia

That writes BeInCrypto, who spoke to traders in the Russian city of Sochi. Many Russians face frozen bank balances, as many Russian banks face sanctions imposed by the West. Because of this, people are not allowed to use euros and dollars more onto keep, after all, banks can no longer dispose of that currency themselves. At the same time there is there has been a serious shortage of cash in the form of Russian rubles for a long time.

In addition, Russian financial institutions are now asking for commissions when consumers deposit non-cash deposits. For example, if residents want to transfer ordinary bank balances, it costs extra money. This does not apply to cash rubles, which banks would like to have.

Op street trading in crypto

VAs a result, many people turn to cryptocurrencies. People would be willing to sell stablecoins like USDT to get their hands on cash dollars, despite the latter being in great short supply and dollars being made illegal.

You would think they might do that at a company or a regulated financial institution. But dollars are also illegal in Russia, so residents cannot go to such an institution here. That is why street traders offer a solution. They buy USDT from these people, and give them cash dollars in return. It is not safe, the trader can in theory just run away or refuse to give the dollars.

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BeInCrypto doesn’t tell how they got these dollars – it’s possible they saw the sanctions coming and bought large amounts of dollars as a result, or that the dollars are being smuggled into the country. The large shortage of cash seems to be the most important factor here. The Russian ruble is worth about 10% more than what it was worth before the war.

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