Alternative Protective Instruments of the Russian Currency Market in the Context of High Volatility and Sanctions

Many economists name deflationary nature as one of the advantages of cryptocurrencies. In this regard, some cryptocurrencies are credited with the ability to protect capital from inflation of fiat currencies. However, this issue is debatable. In addition, the relevance of the topic under study is due to the need to create a digital means of payment for international settlements between Russia and its friendly countries. The purpose of this study is to analyze the possibility of using bitcoin and stablecoin as a protective anti-inflationary asset on long-term investment horizons and an international means of payment under sanctions, respectively. To achieve this goal, the author of the article considered the main approaches to determining the role of bitcoin and stablecoin in the economy and money circulation, identified the main threats associated with the legalization of these currencies. As a result of the study, a classification of stablecoins was presented in terms of the type of collateral and the main factors preventing the transformation of bitcoin into a protective asset were identified. At the end of the study, a conclusion was made about the potential use of bitcoin as a protective asset, and stablecoin as a means of international settlements.