Nabiullina: Bitcoin is not a currency, and investment risks have intensified

Bitcoin is not a currency, and the rise in its price merely ‘demonstrates the potential volatility’ of cryptocurrencies. This was stated during a press conference by the head of the Bank of Russia, Elvira Nabiullina.

She said that her stance on cryptocurrencies has not changed:

‘To be frank, the price of Bitcoin does not even affect its essence. In our view, it is not a currency.’

Nabiullina noted public interest in cryptocurrencies, but said it remains a high-risk asset.

‘The risks remain the same, and perhaps even intensify. The fact that it is a highly volatile asset — as its price rises quickly, so it can fall — is a history that has shown.’ — the head of the central bank.

She also emphasised that Bitcoin is actively used for ‘a variety of dubious operations’.

The digital ruble is ‘a completely different topic.’ According to her, the Central Bank is now discussing the released report on the asset with market participants.

Earlier Nabiullina compared cryptocurrencies to casino gambling and said that the Bank of Russia opposes any monetary surrogates, including private money in digital form.

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