Buying Bitcoin is like stepping into a minefield, Bank of Russia director says
The Russian central bank has once again reiterated its negative stance on Bitcoin (BTC), with one of the bank’s top executives comparing the cryptocurrency to a pyramid scheme.
Sergey Shvetsov, First Deputy Governor of the Bank of Russia, Express the authority’s concerns about cryptocurrency investing in an interview on Wednesday, warning investors of the perceived risk of losses for investors.
Shvetsov said local investors are increasingly investing their money in alternative financial instruments that he called “technological financial pyramids,” stating that Bitcoin is just one such pyramid scheme. He said many retail investors expect huge returns on investing in cryptocurrency, selling their real estate or taking loans in order to invest in Bitcoin despite the “huge” risk of losing all of their money. silver.
“When buying Bitcoin, a person enters a minefield, and there is no one to rely on but himself, and no one can protect him,” argued Shvetsov. The executive pointed out that the Russian government is not responsible for losses suffered by cryptocurrency investors:
“There is no need to walk where you are not protected by the Russian Federation, where your money would just be withdrawn, and there is nothing you can do about it.”
Related: Russian court orders Sber to unblock account used for Bitcoin trading
Shvetsov has already made similar remarks about the cryptocurrency industry, saying last year that the Bank of Russia does not recognize crypto purchases as an investment and calling on the government and financial intermediaries to deter Russians from investing. ” buy cryptocurrencies. As previously reported, the Bank of Russia has also blocked local banks from offering crypto services.
However, investments in cryptocurrencies are increasingly popular in Russia. According to a World Gold Council report, cryptocurrency was the fifth most popular investment tool in Russia after savings accounts, foreign currencies, real estate and life insurance last year, and was ranked slightly more popular than gold investing.