Bank of Russia outlines crypto-related risks

Cryptocurrencies cannot be used as a means of payment due to their high volatility, according to the Bank of Russia document, which outlines the main directions of the digitalisation of the financial market in 2022-2024.

The central bank also notes that crypto assets \”have not received recognition from global regulators\” due to risks of their use for money laundering.

\”In addition, these assets are unsafe due to the heightened interest in them from criminals,\” the document states.

The Bank notes differences in the regulation of the cryptocurrency sphere, but points to an overall trend toward tightening.

The regulator said that central bank digital currencies (CBDCs) could be the answer to the public’s demand for a safe digital payment instrument. In November, the regulator’s head, Elvira Nabiullina, said that the central bank-developed digital ruble will become a full replacement for cryptocurrencies for Russians.

Earlier in October, the Bank of Russia called residents’ investments in crypto assets a potentially significant problem. According to the regulator’s estimates, the volume of residents’ crypto-asset operations in Russia amounts to about $5 billion annually.

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