The Russian central bank has repeated its unfavorable position on Bitcoin, equating the cryptocurrency to a pyramid scheme. In an interview, Sergey Shvetsov, the Bank of Russia’s first deputy governor, voiced the authority’s worries regarding cryptocurrency investing, warning about the perceived danger of investor losses.
Local investors, according to Shvetsov, are rapidly pouring money into alternative financial instruments, which he refers to as technological financial pyramids with Bitcoin being one among them. Despite the great danger of losing all their money, many ordinary investors predict large profits from cryptocurrency investments, selling their real estate assets, or taking out loans to invest in Bitcoin.
The Russian government bears no responsibility for bitcoin investor’s losses, according to the executive. Further stating that,
There is no need to walk where you are not protected by the Russian Federation, where your money would be simply taken away, and you will not be able to do anything about it.
Shvetsov has previously made similar comments regarding the cryptocurrency business, declaring last year that the Bank of Russia does not consider cryptocurrency transactions to be investments and urging the government and financial intermediaries to prevent Russians from purchasing cryptocurrencies.
A few months back Central Bank of Russia also stated in an official notice published that stock exchanges in Russia should not offer investment products linked to cryptocurrency values. In June 2020, Russia passed legislation to regulate digital assets. Early this year, more laws were enacted, banning Russian government workers from possessing cryptocurrencies and requiring election candidates to disclose their cryptocurrency holdings.