Russia’s Central Bank: Russians investing in cryptocurrency deprive the economy of funding

The regulator explained that the initiative to ban digital assets is aimed at preventing the withdrawal of capital

26.01.2022 - 15:00

1 min

What’s new? The Central Bank of Russia stated that the previously proposed initiative for a total ban on cryptocurrencies in the country is aimed at preventing the withdrawal of capital. The representatives of the financial regulator said this in a commentary to Forbes.

Material on the Forbes website

How did the Central Bank explain this position? The Bank of Russia’s representatives believe that the citizens who invest in cryptocurrencies deprive the country of funding. So far, the volume of transactions is small, but given the trend towards its growth, the Central Bank sees the need to prevent the risks of forming a parallel banking system.

“Instead of investing in deposits, stocks, and bonds, which provide funding for our country’s economy, citizens acquire cryptocurrencies, which actively service payments in the illegal economy. A parallel with dollarization can be drawn here, but only investments in cryptocurrencies can be completely depreciated,” the regulator’s representatives pointed out.

How did events develop? On January 20, the Central Bank of Russia published a report proposing a ban on the turnover and mining of cryptocurrencies in the country. Later, the regulator’s representative, Elizaveta Danilova, hastened to assure that the regulator does not intend to impose a complete ban on transactions with digital assets for the time being.

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