Russia’s central bank is trying to evaluate the amount of bitcoin (BTC) held by local investors after a huge amount of money has not been returned to banks after the pandemic-fuelled withdrawals.
According to Elizaveta Danilova, Head of the Financial Stability Department of the central bank, the Bank of Russia is polling local cryptocurrency investors to estimate the volume of cryptocurrency investments in Russia.
“We need to work on the data and raise public awareness of the risks of investments that are not backed by anything,” Danilova said in a Reuters interview published on the Bank of Russia’s official website on October 14.
The official argued that the cryptocurrency market lacks transparency not only in Russia but also in other jurisdictions, pointing to the high risk of crypto derivative products such as bitcoin futures or exchange-traded funds. “The challenge is that the market is cross-border. People are able to invest in crypto through foreign intermediaries. Some of the major foreign currencies trade cryptocurrency derivatives which carry huge risks,” Danilova said.
The Bank of Russia’s efforts to analyze the volume of local crypto investments comes amid recent reports of Russians not wanting to put their money in banks. According to Danilova, 2.6 trillion rubles ($36 million) have not been returned to banks after massive withdrawals in 2020 due to the COVID-19 pandemic.
Some existing data proves that cryptocurrency investing has become extremely popular in Russia. According to a survey by the Association of Forex Dealers of Russia, approximately 77% of Russian investors prefer bitcoin to traditional investment instruments such as gold and forex.
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Amid the growing popularity of crypto, the Bank of Russia has urged the government to limit crypto investments by unaccredited investors, allegedly to slow down transactions in crypto exchanges to avoid “emotional” buying of crypto. starting a legal initiative.
Despite maintaining the Bank of Russia’s skeptical stance on crypto, Russian President Vladimir Putin believes that cryptocurrencies like bitcoin work well for transferring funds around the world and may one day be a “means of accumulation.” “Can be made.