First Deputy Governor and member of the Board of Directors of the Russian Central Bank – Sergey Shvetsov – classified BTC as an example of a financial pyramid. He called on investors to stay away from him. In his view, allocating money to an asset is high risk and may result in an overall loss.
BTC is a “technological financial pyramid”
Russia’s first deputy governor has called on local investors to look out for alternative financial instruments such as BTC. He claimed that investing in it was so risky that it could be compared to entering a minefield:
“When buying BTC, a person enters a minefield and has no one to rely on but himself and no one can protect him. No need to go where they simply take your money and you won’t do anything about it. “
Shvetsov, a former footballer, went on to describe BTC as an example of a “technological financial pyramid.” He warned that the Russian Federation has no power to prevent such fraud if people accidentally lose their funds:
“We will start closing the site, the banks will stop payments. But there are other channels that appear very quickly where you can’t help. “
Nevertheless, the top banker revealed that the Russian central bank is willing to introduce testing programs for some digital assets. They will be issued by Russian companies and operate according to local legislation. Shvetsov concluded that testing and certification effectively inform citizens about the risks associated with investing in this asset class.
The attitude of the Russian Central Bank to cryptocurrencies
Russia’s top central bank seems to be more hostile to cryptocurrencies, as Shvetsov’s view is not the first such example.
Elvira Nabiullina, head of Russia’s central bank, said digital assets were highly volatile and warned investors to be wary of large losses. She went on to say that investing in virtual currencies is more dangerous than any other option:
“Speculative crypto assets are certainly the most dangerous strategy of all. The central bank never gives advice on where to invest, but in this particular case – you should definitely not invest here. “
