The Bank of Russia has published a report for 2021, in which it has pointed out the risks associated with cryptocurrencies.
According to some estimates, the volume of cryptocurrency transactions of Russian citizens reached $5 billion last year. The regulator believes the spread of crypto assets threatens the financial stability of Russia:
“There is a risk of undermining monetary circulation and the loss of the sovereignty of the national currency, as well as increasing risks of the transfer of savings from the traditional financial system to the unregulated segment of cryptocurrencies, which threatens to reduce the financial stability of banks.”
The central bank of the country has noted the spread of cryptocurrencies in Russia and the growth of their prices indicate the formation of a “bubble.” The regulator has also reiterated crypto assets have signs of pyramids, and citizens can lose their investments due to the volatility of rates and the limited legal protection of investors.