Sergey Shvetsov – a member of the board of directors of Bank of Russia – urged investors to stay away from Bitcoin. In his opinion, allocating money to the asset is very risky and can lead to a total loss.
Bitcoin is a “technological financial pyramid”
The first deputy governor of Russia’s central bank – Sergey Shvetsov – warned local investors to beware of alternative financial instruments like bitcoin. He argued that investing in them was so risky that it could be compared to entering a minefield:
“When buying Bitcoin, a person enters a minefield and there is no one to rely on but themselves and no one can protect them. You don’t have to go where you are not protected by the Russian Federation, where your money would simply be taken away from you and there is nothing you can do about it. “
Shvetsov, who is interestingly a former soccer player, went on to beat up Bitcoin, describing it as an example of a “technological financial pyramid”. He warned that the Russian Federation has no power to prevent such scams when people lose their money:
“We are initiating the closure of locations, banks are stopping payments. But there are other channels that pop up very quickly where a person cannot be helped. For example, if he has an account with bitcoins and the pyramid collects bitcoins. There is no way to block the transfer from his account to the financial pyramid account in bitcoins.
Sergey Shvetsov, source: smart-lab.ru
Still, the top banker announced that Bank of Russia is ready to introduce testing programs for some digital assets. However, these are issued by Russian companies and are subject to local legislation. Shvetsov concluded that tests and certifications are effective in informing citizens about the risks associated with investing in this asset class.
Bank of Russia isn’t keen on crypto
Top executives at Russia’s central bank appear to be rather hostile to cryptocurrencies, as Shvetsov’s opinion is not the first example of its kind.
As reported by CryptoPotato, Elvira Nabiullina – the head of Russia’s central bank – claimed that digital assets are very volatile and warned investors to beware of “appalling” losses. She went further, stating that investing in virtual currency is more dangerous than any other option:
“Speculative crypto assets are certainly the most dangerous strategies of all. The central bank never gives advice on where to invest, but in this particular case – here [one] definitely shouldn’t [invest]. “
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