Russia's central bank, the Bank of Russia, said in a recent review of financial stability that the risks associated with household investments in cryptocurrencies are rising. The central bank has learned — citing "various indirect estimates" — that Russian investors are among "the most active participants in cryptocurrencies market."
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"As Bitcoin and other cryptocurrencies are not backed by any assets, investments in them can be entirely lost, both due to their volatility, and as a result of fraudulent activities and cyberattacks," the bank warned.
The Bank of Russia emphasized that global risks may be also exacerbated "due to the growth of investment in cryptocurrencies." The regulator also claims Russia is among the leaders in terms of the number of visits to Binance. The total annual volumes of crypto transactions of Russians amount to $5 billion, the report says.
In September, Dmitry Peskov, the official representative of Russian president Vladimir Putin, said there is no reason for the recognition of bitcoin (EXANTE: Bitcoin) in the country and that putting the cryptocurrency in line with money "would bring nothing but detriments" to the financial and economic system.
The Bank of Russia Deputy Chairman, Alexey Zabotkin, said in July that large economies would not legalize bitcoin as legal tender. Zabotkin recalled that from the central bank's point of view, cryptocurrencies are monetary substitutes, and in Russia, the ruble remains the only means of payment.
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