The Central Bank of Russia called the citizens' investments in cryptocurrency “a problem”

According to the regulator, virtual currencies carry huge risks

15.10.2021 - 07:15

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1 min

What's new? The Bank of Russia believes that the citizens’ investments in cryptocurrency is a potentially significant problem. This was announced by Elizaveta Danilova, the head of the Central Bank’s financial stability department in an interview with Reuters.

Material on the website of the Central Bank of the Russian Federation

How did the official explain her position? According to Danilova, people are attracted to virtual currencies because of their “excessive volatility”, as many are looking for ways to make easy money. Cryptocurrency derivatives also carry “enormous risks,” she added.

“The cryptocurrency market lacks transparency not only in Russia but also in other jurisdictions. We need to work both on the data and educate the public about the risks of such investments, which are not backed by anything.” the regulator’s representative said.

What had happened before? As we mentioned in mid-October, the Russian authorities do not yet intend to restrict citizens from buying cryptocurrencies on foreign exchanges. At the same time, the State Duma is soon going to limit investments of unqualified investors in cryptocurrency assets at the legislative level.

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