The possibilities for legal protection of investors are limited, so investments in digital currencies can be completely lost, the Central Bank argues

Bank of Russia warned about the formation of a bubble in the crypto market

11.04.2022 - 15:50

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1 min

What’s new? The Bank of Russia believes that the growth of the cryptocurrency market largely reflects the formation of a bubble. The Central Bank has warned that the possibilities for legal protection of investors are extremely limited. Investments in cryptocurrencies can be completely lost both due to the volatility of the exchange rate and as a result of fraudulent actions and cyber threats. This is stated in the Bank of Russia’s annual report.

The Bank of Russia’s report

What preceded it? Earlier, Ksenia Yudaeva, Deputy Chairman of the Central Bank, criticized cryptocurrencies, comparing them to Ponzi schemes. Yudaeva also stated that digital assets can replace the ruble as the primary means of payment. In addition, the Central Bank believes that citizens’ investments in cryptocurrencies may lead to a decrease in the growth potential of the economy.

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