Russian Finance Ministry compares cryptocurrencies to the MMM pyramid

Although many have made money from cryptocurrencies, all digital assets possess the traits of a financial pyramid. This view was said by Deputy Finance Minister Alexey Moiseev.

“Some may recall there was such a pyramid — ‘MMM’ — in 1990. Many earned money from it. True, even more people lost money […]. You see, this is characteristic of any pyramid that someone profits. Therefore it becomes popular,” the official said.

Speaking at the Sirius-2023 International Forum on Financial Security, Moiseev reminded that he had repeatedly warned citizens against investing in cryptocurrencies.

The deputy minister acknowledged the importance of digitisation for further development. In his view, the banking system is moving onto entirely new rails.

“That is fine, but cryptocurrency has nothing to do with this,” Moiseev emphasised.

In February 2022, Deputy Chairman of the Bank of Russia Vladimir Chistyukhin stated that the central bank categorically objected to the influx of non-qualified investors into the market for digital assets.

Moiseev agreed with the regulator’s assessment of cryptocurrencies as highly speculative and risky assets and with the ban on such settlements.

The Finance Ministry also spoke of plans to cap investment amounts in cryptocurrencies for non-qualified investors.

As reported, on August 1 in Russia the law came into force on the digital ruble. Citizens will have the opportunity to use the new payment instrument in 2025–2027.

In September, the Finance Ministry explained the accounting treatment of CBDC operations.