Cryptocurrencies Carry Systemic Risks, Threaten Ruble, Bank of Russia Insists – Finance Bitcoin News

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Cryptocurrencies seen by the Bank of Russia as a threat to the ruble and financial stability.

for 2021. Expanding on a long list of previously highlighted negatives related to digital currencies like bitcoin, the monetary authority stated:

There is a risk of undermining the circulation of money and loss of sovereignty for the national currency. The regulator is repeating earlier warnings that digital assets increase the risk of outflow of funds from the traditional financial system towards the still largely unregulated crypto market. This transfer of savings threatens the financial stability of Russian banks, the CBR says, quoted by RBC Crypto.

Bank of Russia remains concerned about the “well-being of citizens” as in its view, the growth of the crypto market forms a bubble while cryptocurrencies bear characteristics of financial pyramids. Investor protection is limited and investments in digital coins can be lost due to price volatility or as a result of fraud and cyberthreats, the CBR adds.

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