Bank of Russia Maintains Tough Stance On Cryptocurrency
Despite worries, especially by leading public figures in Russia, that the country might be missing out on the benefits of the cryptocurrency, the bank of Russia hasn’t changed its position about it.
Elvira Nabiullina: “Investing in Crypto Is Very Dangerous”
Elvira Nabiullina, Russia’s central bank governor, reaffirmed that the bank is yet to have any cause to change its previous stance on the digital asset market. Nabiullina stated this during an interview with Komsomolskaya Pravda today, stating that the crypto market is arguably the most dangerous investment currently in existence.
Nabiullina further stated that crypto investment is even riskier than the foreign exchange market. In her words, she said, “while you can lose your shirt on the foreign exchange market, the loss is faster on the crypto trade market.”
She further said the volatility in cryptocurrency prices is exceptionally high and can result in “tremendous losses.” Hence, she categorically stated that the bank of Russia doesn’t advise any Russian to invest in the crypto market.
In 2017, Nabiullina stated that bitcoin or any other cryptocurrency is “fake money” that should never be used as a means of payment. She also likened the rising popularity of the crypto market to the “gold rush” of the 1800s.
Elvira Nabiullina: “The Digital Ruble Is Highly Beneficial”
Even though Nabiullina maintains her pessimism about the crypto market, she is pretty optimistic about the bank of Russia’s central bank digital currency project – the digital ruble. Last year, she opined that the major benefit of the digital ruble is that it would cut out financial intermediaries and improve businesses in the country.
As previously reported on Tokenhell, the bank of Russia’s tough stance on the crypto market has been publicly criticized by Oleg Deripaska (one of the wealthiest men in Russia) and Fedot Tumusov (a state duma member). Oleg suggested that Russia’s apex bank must quickly provide favorable crypto regulations, while Fedot remarked that the country is losing numerous benefits of crypto because of its tough stance.
Russia’s Largest Online Bank Interested in Offering Crypto-Related Services
Despite Nabiullina’s opinions about the digital asset industry, the largest online bank in Russia, Tinkoff says that it won’t mind providing crypto-related trading services to its clients. But it would be patient until the country’s apex bank relaxes its tough stance about the virtual asset industry. However, in an interview with CNBC, Oliver Hughes, the company’s CEO, said, “investors with thorough financial knowledge” won’t mind investing in digital currencies.
It would be interesting to see the evolution of the digital economy in Russia with the country’s apex bank not interested in the industry. In contrast, online banks, influencers, and wealthy men keep pushing for its increased use in the country, especially as more lesser-developed countries develop favorable crypto policies.
Before the year 2020, it was illegal to be involved in any cryptocurrency transaction. Even though it is now legal to trade cryptocurrency, it is not yet legal to use it as a means of payment.
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