The governor of the central bank of Russia, Elvira Nabiullina, has issued a warning to remind investors of the risks of the crypto market. She believes that digital assets are very volatile and warns investors to beware of “appalling” losses.
In an interview with the local newspaper Komsomolskaya Pravda, she speculated that investing in digital assets was more dangerous than any other strategy. She added that the main problem with the market is its volatility. She further stated that people could lose huge amounts of money as a result.
”Speculative crypto assets 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 price is very volatile, losses may be appalling.”
On the other hand, Nabiullina supports bank deposits as a better choice for investors over mortgage funds. However, she added that here, too, people should be careful and weigh 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.”
Central bank officials in Russia believe that virtual assets like the CBDC, not cryptocurrencies like Bitcoin, would inevitably become the future of the financial world. They will work under the control of the government, and one e-rouble will be equal to one cash rouble.
Russia Should Add BTC As a Payment Method
Oleg Deripaska, one of Russia’s richest people, used his Telegram account to criticize the Russian bank’s stance on crypto. He speculated that the country should add important cryptocurrencies as a means of payment. He used the case of the Latin country El Salvador to cite an example.
”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, the oligarch stressed the need for Russia to effectively conduct trade transactions with the rest of the world. He also urged the central bank to “use real financial instruments to achieve independence in foreign trade settlement”.