“Reducing bank rates is not …


Santelli Exchange: The question is whether lowering interest rates is necessary

“Reducing bank rates is not ...

“Reducing bank rates will not affect interest in cryptocurrencies” – CEO of Bistox Exchange

  • Lower bank rates will have no impact on cryptocurrencies

  • Russians will invest in ETH

  • Real estate will be a popular investment asset

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“Reducing bank rates is not ...

The Central Bank of the Russian Federation decided to reduce the interest rate to 4.5%. This means that in the near future the country’s banks should cut interest rates on deposits. Keeping money in banks will become simply unprofitable. Does this mean that Russians will start looking for a safe haven for their assets in cryptocurrencies? Harutyun Nazaryan, CEO of Bistox Exchange, asked BeInCrypto about this.

 – How the reduction in rates on bank deposits in Russia will affect the interest in cryptocurrencies?

A.N .: I do not think that a decrease in bank deposit rates can affect the growth of interest in cryptocurrencies. In Russia, as in a country in which the average level of income and the minimum wage is quite low, cryptocurrency retains not only the status of a risky asset, which is available only to those who understand this and have an increased interest, or simply loves to experiment. Cryptocurrency can be classified not only as risky, but also as a luxury asset for those who want to hit the jackpot right here and now. This is a small share of people and money, and I do not believe that this share will increase with decreasing rates on bank deposits, since people who want quick money are unlikely to be interested in long-term investments. I can assume that most of them have no bank deposits.
The rest of the category, who know what fundamental investments, investments in savings accounts and real estate are, will turn their attention towards cryptocurrencies last. The first thing they will pay attention to is real estate, including in other countries, which brings much higher return on investment. In the event that the current pandemic goes to the second wave, then the property will significantly drop in value, which means it will become more attractive to buy.

“Reducing bank rates is not ...

– What cryptocurrencies will Russians invest in??

A.N .: I believe that Ethereum is treated very well in Russia. This is largely influenced by the involvement of Vitalik Buterin, since we love our people who are achieving something in the international arena. Ethereum has a lot of potential due to the big boom that attracted staking.
Staking has raised over $ 1.5 billion to the Ethereum platform. A huge number of new projects are being opened on the basis of Ethereum. This has greatly spurred the growth in volume and confidence in ETH. Plus, you need to take into account that the main currency today is not Bitcoin, but USDT, and there are a million arguments proving this. If there is no Tether, it is unclear what the entire cryptocurrency world will rely on: a very large number of trades are tied to Tether, and since most of USDT is based on Ethereum, this preserves the liquidity of the platform itself. USDT and Ethereum are the main players in the coming years.

 How interesting are cryptocurrencies to Russian investors in the current economic realities?

A.N .: In Russia and other countries of the post-Soviet space, interest in cryptocurrencies is primarily shadow, and only then investment. It is an ideal tool for transfers, for withdrawing funds from Russia and other countries. Despite the fact that I am a promoter of cryptocurrencies and the founder of the Bistox cryptoexchange, I still believe, unfortunately, that the shadow economy has the greatest interest in cryptocurrencies. The existing economic difficulties in Russia, the ill-conceived tax system created so that people go out of business, and not develop it, create such shadow industries. If we talk about investments, then cryptocurrencies are not a primary asset in which not only Russians want to invest, but also investors around the world. Me and my team are working to fix this. However, it still remains a high-risk, expensive investment, so I believe that demand for cryptocurrencies will grow in the coming years..

– Thanks for the conversation!


“Reducing bank rates is not ...

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