Investing in cryptocurrencies is one of the most popular investment vehicles in Russia, according to a new report.

The World Gold Council, a major market development organization for the gold mining industry, released on October 20 a report on its vision for retail gold in Russia.

According to the report, cryptocurrency is currently the fifth most popular investment vehicle in Russia after savings accounts, currencies, real estate and life insurance. As part of the World Gold Council ranking for Russian investments over the past 12 months, gold cryptocurrencies are tracked, accounting for 17% and 16%, respectively.

The report is based on the results of online interviews in 2023 with investors from Russian cities. The respondents are “active investors” – those who made at least one investment in the twelve months prior to the survey.

Investments in Russia over the past 12 months. Source: World Gold Council.
Cryptocurrencies such as Bitcoin (BTC) remain popular in Russia and benefit from being an affordable investment vehicle, according to the report. Meanwhile, gold has not proven itself as a common investment resource due to its lack of education and confidence.

The World Gold Council also pointed out that the trend of investing in cryptocurrency in Russia is emerging despite the fact that digital assets are a relatively risky investment, while gold has historically been considered a stable long-term investment. This could be a sign of increased demand for new investment products, as suggested by the World Gold Council:

The rise of cryptocurrencies shows that there is a drive for choice and appeal among retail investors. As the Russian investment market takes shape, opportunities will arise for many investment products and gold will need to be responded to.
Russia has emerged as one of the largest cryptocurrency investing jurisdictions. According to a September 2020 Chainalysis report, Russia is currently the second largest country in the world in terms of the frequency of cryptocurrency adoption after Ukraine.

Source: CoinTelegraph