Russian Central Bank Official Considers Pushing Crypto Out Of The Country

Russian Central Bank Official Considers Pushing Crypto Out Of The Country

The Central Bank of Russia Governor Elvira Nabiullina suggested the country may end up banning Bitcoin BTC/USD and other cryptocurrencies.

What Happened: Nabiullina said during a press conference earlier today that Russia's central bank "attitude towards cryptocurrencies is of, to put it mildly, skepticism," according to a Friday report by news outlet FinMarket.

She also stated crypto poses significant risks for retail investors and features significant volatility. Nabiullina pointed to the use of cryptocurrencies for illegal operations, saying "Cryptocurrencies are opaque in that they are frequently used for illegal operations or criminal nature. Therefore, we cannot welcome investments in them. We seek to prevent the Russian financial infrastructure from using crypto transactions. This is quite doable."

See Also: IS REGULATION BAD FOR CRYPTO?

Nabiullina's remarks follow recent conflicting reports about the Central Bank of Russia seeking to enforce a blanket ban on cryptocurrencies, with a Reuters article sharing banks' fears over risks to financial stability and the exploding volume of transactions. The country's mutual funds were also recently banned by the central bank from investing in cryptocurrencies or instruments that give exposure to digital assets.

In late October, Russia's Deputy Minister of Foreign Affairs Aleksandr Pankin suggested cryptocurrencies could be an alternative asset to the U.S. dollar in the country's economy. The same month, Russian President Vladimir Putin said cryptocurrencies have value and he accepts their use for payments.

Photo by Jaunt and Joy on Unsplash

Posted In: Aleksandr PankinCentral Bank of RussiaElvira NabiullinaVladimir PutinCryptocurrencyNewsGlobalMarkets

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