A7A5, a stable coin on the back of ruble launched in Kyrgyzstan to help Russia facilitate cross -border payments and bypass international sanctions, moved $ 9.3 billion in transactions in just four months.
In addition, current estimates suggest that the market capitalization of A7A5 is only $ 156 million. To reach these commercial volumes in such a short window, the same accounts should regularly circulate the tokens between them.
The success of the Kirghizstan Stablecoin A7A5
In recent months, Kyrgyzistan has been working to promote a national cryptography industry. In April, the nation joined the co-founder of Binance, Changpeng “CZ” Zhao, to develop its blockchain ecosystem, launching A7A5 shortly after.
According to the Russian media, the stablecoin of Kyrgyzstan was a major success, moving $ 9.3 billion in four months.
To be frank, the own interior economy of Kyrgyzstan does not seem strong enough to supply so much stable volume. The country has practically no cryptography sector, and its nominal GDP is $ 17.5 billion.
At 9.3 billion dollars in four months, the circulation of the A7A5 is on the right track to exceed the whole country.
In other words, the nation has had external help. After all, A7A5 is an asset supported by the ruble, and Russia has a direct interest in using the crypto to get around the sanctions.
An official of the Ministry of Finance of Russia even distinguished the A7A5 as a potential asset to question the domination of the dollar.
“Russian affairs and government representatives have been talking about how they could use cryptocurrency to escape sanctions on a large scale, in particular by creating their own stablecoin,” said Eliza Thomas, a principal investigator at the Center for Information Resilience (CIR) in London.
Of course, these are pretentions that are quite serious to hold for granted. Where is the tangible proof that sanctions the escape which offers the new stablecoin of Kyrgyzstan?
It is difficult to obtain exact data on this illicit trade, but Beincrypto has exclusively published certain reports on the developing subject.
Crypto exchange in the shadow of Russia
Garantex, one of the largest centralized exchanges in Russia, was closed in March after the American and European authorities seized the platform. However, the previous analysis determined that several employees have launched a new exchange, Grinene, who has taken over many Guarantx assets.
Above all, blockchain data showed huge A7A5 transfers, proving the connection.
Garantex was one of the first exchanges to list the Kyrgyzstan stablecoin, and the platform still used it two months after its stop.
If nothing else, it shows that these activities were a major artery for the A7A5 trading volume. In addition, the Financial Times said that the exchange represents the largest share of all transactions.
The publication estimated that 12 billion A7A5 tokens are currently in circulation, which results in a market capitalization of $ 156 million.
To reach $ 9.3 billion in volume so quickly, the same accounts should regularly spend these tokens from front to back.
Kyrgyzistan may not even provide the support of the Fiat de La Stablecoin. The reports also claim that the A7A5 ruble reserves are stored in Promsvyazbank, a Russian state bank which strongly lends to the country’s defense industry.
There are many uncertain facts on this case, but the growing evidence depicts a convincing image. If Kyrgyzstan wants to build a successful cryptography sector, it could associate with Russia on this stablecoin to do so.
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