Bank of Russia says Russians’ bitcoin investments pose a potentially significant problem

The Bank of Russia regards residents’ investments in cryptocurrencies as a potentially significant problem. This was stated by Elizaveta Danilova, head of the Financial Stability Department at the Bank of Russia, in an interview with Reuters.

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In her view, people are drawn to Bitcoin by its ‘excessive volatility’, as many seek easy money.

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“The transparency of this market is very low both here and in other countries. We need to work on data and on raising citizens’ awareness of the risks of such unbacked investments,” she said.

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According to Danilova, the regulator’s difficulty lies in the cross-border nature of the market, as residents of the Russian Federation can buy cryptocurrencies through foreign platforms.

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She noted that cryptocurrency derivatives carry ‘enormous risks’.

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Danilova also said that the Bank of Russia is conducting a survey of market participants to assess the volume of investments in cryptocurrencies.

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The Bank of Russia has long been скептически относится to citizens’ investments in cryptocurrencies and maintains that the ruble is the only legal tender in the Russian Federation.

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In September, First Deputy Chairman of the Bank of Russia Sergey Shvetsov announced the creation of a mechanism to block payments to Bitcoin exchanges and exchangers to combat ’emotional buying of cryptocurrencies’.

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