Elvira Nabiullina – the Chief of Russia’s Central Bank – sounded a note of caution for investors to beware of the risks in the crypto market. She opined that digital assets are very volatile and warned investors to be wary of ”appalling” losses.
Do Not Get Involved in Crypto
The head of the Russian Central Bank, Elvira Nabiullina, shared her stance on whether people should enter the crypto market. In an interview with the local newspaper Komsomolskaya Pravda, she surmised that investing in digital assets is more dangerous than any other strategy:
”Speculative cryptoassets are surely the most dangerous strategies of all. The Central Bank never gives advice, where to invest, but in this particular case – here [one] should definitely not [invest].”
The top banker pointed out that the main issue of the market is its volatility, and people may lose colossal sums because of it:
”The price is very volatile, losses may be appalling.”
On the other hand, Nabiullina backed up the bank deposits as a better option for investors to stake their funds. However, she added that even here, people should be careful and measure their risks:
”It is necessary to closely explore the products, take a critical look at ads, particularly when you are told that there are no risks here, whereas yields are high, it doesn’t work that way.”
Previously, the central bank official opined that virtual assets would inevitably be the future of the financial world. Nonetheless, she believes that central bank digital currencies, not cryptocurrencies like Bitcoin, will be that innovation. They will work under government control, and one e-rouble will be equal to one cash rouble.
Bank of Russia is Wrong
Russia’s Central Bank keeps piling up negative comments on cryptocurrencies and trading regulations. However, one of the wealthiest Russians – Oleg Deripaska – blamed the institution that its moves are not beneficial for the nation.
The oligarch, who was once the richest man in Russia, went further, stating that the largest country by landmass should follow El Salvador’s example and add Bitcoin as a payment method:
”Even poor El Salvador, known for being close to oft-mentioned Honduras, has realized the need for digital currencies and taken a simple path, recognizing Bitcoin as a means of payment.”
In addition, Deripaska outlined Russia’s need to execute business deals effectively with the rest of the world and urged the central bank to adopt a ”real financial instrument enabling independence in foreign trade settlements.”
Featured Image Courtesy of FT