The Central Bank of the Russian Federation has listed the “system threats” of cryptocurrencies

The Bank of Russia published a report for 2021, in which he again indicated risks associated with cryptocurrencies.

According to some estimates, the volume of cryptocurrency transactions of Russian citizens reached $ 5 billion a year, noted in the Central Bank.

The regulator believes that the spread of crypto acts threatens with risks for the financial stability of the Russian Federation:

“The risk of undermining the monetary circulation and loss of the sovereignty of the national currency is created, and the risks of the renewal of savings from the traditional financial system to the unregulated cryptocurrency segment are also increased, which threatens with a decrease in the financial stability of banks”.

The Central Bank noted that the spread of cryptocurrencies in the country and their growth in their prices indicate the formation of a “bubble”. The regulator also said that crypto acts have signs of pyramids, and citizens may lose their investments due to the volatility of the courses and limited legal protection of investors.

The Bank of Russia believes that the further growth of the cryptocurrency market and the involvement of banks in it is fraught with the fact that financial intermediaries will carry “characteristic of cryptocurrencies risk of liquidity, market risk and credit risk”.

“Thus, the growing interest of Russian citizens, the significant amount of investments and high risks of cryptocurrencies create potential system threats, and therefore the Bank of Russia proposed to realize a number of measures to regulate the above risks,” the Central Bank summed up in the Central Bank.

Recall that the Central Bank insists on the complete ban on the release, circulation and exchange of cryptocurrencies, as well as organizing such operations in the Russian Federation.

The Ministry of Finance of the Russian Federation does Here Comes the not agree with such a radical position and proposes to regulate the market, for this the ministry has developed a separate bill.

Nevertheless, the Central Bank continues to talk about the need to ban cryptocurrencies. The sanctions imposed against the Russian Federation due to invasion of Ukraine also did not soften the position of the regulator in relation to crypto actes.

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