Eli Mizrah (Photo by Eli Cohen)
Could it be that the war between Russia and Ukraine is bringing the world closer to a situation where digital currencies are becoming an asset / sustainable currency? If you ask Eli Mizrah, CEO of Silver Castel Investment House, which specializes in investing in digital currencies, this is exactly the situation today.
“This is an amazing piece. There is something in common for everyone during this period and it is the panic over virtual currencies. The Ukrainians themselves, in all the days of fighting we have seen a significant increase in trading volumes as Ukrainian citizens buy USDP which are dollar-denominated digital currencies. “It’s like an on-key disk and as long as it has internet access it will be able to withdraw the money. It’s much more mobile and flexible and that way any point in the world that has internet, they will be able to withdraw their money.”
More in-
The Ukrainian government supports this situation?
“The Ukrainian government is thirsty for help, so in the world of digital currencies they have opened all kinds of wallets so that people can donate to them in all kinds of currencies so they can get any kind of crypto and those tens of millions of dollars. So they are developing capabilities and reserves in crypto. ”
How does this process work in Russia?
“Russian citizens are in a panic for digital currencies and especially Bitcoin. The first reason is the fear of disconnection of the Russian system from the world and they fear that they will not be able to use money in a normal banking framework so Bitcoin is a natural place for them. “Because the ruble is falling and they are afraid of the value of their wealth and Bitcoin creates an excellent hedge for them to fall the ruble”.
This leads to the question of how the Russian government sees these things, after all they are losing control of their currency?
“The Russian government has been buying Bitcoin and currency reserves for many years. It is worth understanding the numbers: 12% of all bitcoin in the world is in Russia. And that’s a lot. Some of it is with citizens and some with the Russian government. It’s very difficult to stop trading in these currencies.
“We estimate that Russia’s reserves were with the thought that when he is sanctioned and they will have to deal with it. In addition there is a discourse that can not be established or denied and is about an attempt to establish digital nature alongside a financial trading system between China, Russia and India.
“It is worth noting an interesting process that has taken place in recent days and is a very large gap, of tens of percent, that opens between the price of bitcoin in the world and the price in Russia when there is a trading premium in Russia because people are looking for the way out for their money.”
Eli Mizruh is the CEO of Silver Castel Investment House, founded in 2018 by senior bankers and the Israeli capital market: Eli Mizruh (CEO, former CEO of the Golf Network), Zvi Ziv (Chairman, former CEO of Bank Hapoalim) Gabi Ravid, Chen Munitz, Rami Beinisch and Danny Zilbiger, who until a few years ago were very dominant figures in the local capital market, Silver Castel is traded on the stock exchange at a company value of NIS 63 million.
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