Deputy Chairman of the Bank of Russia Sergey Shvetsov compared the purchase of crypto assets to a financial pyramid or a game of roulette and said that the Central Bank of the Russian Federation does not consider it an investment.
According to Prime, Sergey Shvetsov criticized investments in crypto assets during a live broadcast dedicated to the new law on categories of retail investors. The Deputy Chairman of the Bank of Russia said that the classic crypto asset “does not carry any obligations”, and its value is determined by supply and demand.
In this regard, the Central Bank of the Russian Federation is of the opinion that cryptocurrency is “the most risky instrument both in terms of its volatility characteristics and in terms of its functioning prospects”. Therefore, the purchase of cryptocurrencies is considered by the Bank of Russia not as an investment, but rather as a financial pyramid or a game of roulette, Sergey Shvetsov noted.
He also said that Central banks around the world are suspicious of”surrogate money.” At the same time, the Constitution of the Russian Federation directly prohibits them, and the law provides for criminal liability for the use of such money in settlements.
“The Bank of Russia as a regulator adheres to the position that the acquisition of cryptocurrencies is not an investment. This is more like a financial pyramid or a game of roulette, but this does not apply to the financial market and should not be encouraged by both the state and financial intermediaries to allow citizens to purchase cryptocurrencies,” Shvetsov said.
The Deputy Chairman of the Central Bank of the Russian Federation also said that crypto assets are used to ” circumvent regulation in the field of countering the laundering of proceeds from crime.” In this regard, the Bank of Russia categorically does not support investment by citizens in this “criminal sector”.
Sergey Shvetsov commented on the bill on digital financial assets recently adopted by the state Duma in the third reading, which will allow transactions with such assets from next year. He said that digital financial assets can be considered a form of asset storage rather than a new entity.