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If I understand this correctly, Binance is taking a huge (monetary) risk by selling BTC for Rubles, which may lose value really quickly as the situation progres
by leroman 5y ago
If I understand this correctly, Binance is taking a huge (monetary) risk by selling BTC for Rubles, which may lose value really quickly as the situation progresses, and who knows..
Accepting Rubles at this point might be more risky than BTC, the latter might be more stable, shockingly.
- deweller 5y agoBinance is not taking this risk. The counterparty who is selling BTC for Rubles is taking the monetary risk of the Rubles devaluing. My guess is that the buyers of Rubles are turning around and selling some or all of them on a foreign currency exchange to mitigate their risk.
- leroman 5y agoThen who would that party be? who is taking this risk then? any idea?
- deweller 5y agoPerson A offers BTC for sale for Rubles. Person B offers Rubles in order by buy BTC. Binance is an exchange which matches these two offers. In this scenario, Person A is taking the risk of the Ruble devaluing.
- aaaaaaaaata 5y agoBinance likely couldn't even identify all of the parties if they wanted to. AMM.
- krustymeathead 5y agoMaybe the Russian Central Bank is buying up rubles to attempt to stabilize it? They probably wouldn't be exchanging them for BTC, but may be the ones holding the rubles at the end.
- rmbyrro 5y agoThey certainly are not carrying the Rubles, but automatically converting them to USD or else.