Bitcoin is a high-risk asset for investments, and the Bank of Russia cannot protect cryptocurrency holders in the event of losses. This was stated by Sergei Shvetsov, the first deputy chairman of the Bank of Russia.
According to him, the central bank sees a problem in the investments of a large number of citizens in alternative instruments, “which we call financial pyramids, or technological financial pyramids, like Bitcoin”.
Shvetsov stated that, in pursuit of returns, people often sell or pledge property, “to bury their money in the ‘Field of Miracles'”:
“This is a very, very big problem that our citizens are not familiar with the rules of the capital market, where promised returns reflect the level of risk. And if you want to earn a lot of returns on that money, the probability that you will lose everything is enormous.”
He noted that licensed Russian brokers do not provide access to crypto assets, but “citizens use the internet”:
“Therefore, by buying the same Bitcoin, a person enters a minefield, where, besides themselves, there is no one they can count on, and nobody can protect them. We also tell citizens that you should not go to a place where you are not under the protection of the RF, where your money will simply be taken, and you will not be able to do anything about it.”
Shvetsov also said that the central bank can suspend payments to companies showing signs of illegal activity, but if the funds are raised in cryptocurrency, “there is no way to help the person”:
“For example, if he has an account with Bitcoins, and the pyramid collects Bitcoins. There is no way to block a transfer from his account to the pyramid’s Bitcoin account.”
Earlier, representatives of many major banks, such as JPMorgan Chase, criticized Bitcoin, but today they recognize the interest of their clients in cryptocurrency and offer products related to it.
“In the same way, governments will first try to criticise, ban, regulate the crypto economy, but as scale grows they will be forced to integrate into it or lose substantial growth potential,” — said ForkLog author of the Telegram channel CryptoEssay Stepan Gershuni.
In some countries investments in cryptocurrencies have already been approved by law. In April the Bundestag backed a bill, under which German funds for institutional clients may invest up to 20% of assets in digital currencies.
Gershuni noted that Bitcoin is effectively a reserve currency of a parallel digital economy, which consists of many other projects — equivalents of all financial services (banks, insurance, exchanges), decentralized organizations, media, games, and the art market. This economy is global, uncensorable, and offers more convenient, profitable, and reliable services for clients, he stressed.
“Bitcoin is not a bigger pyramid than the Russian ruble or many other fiat currencies”, said Gershuni.
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