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The Central Bank of Russia (CBR) has begun to examine the risks associated with cryptocurrency investments. The regulator will conduct a special study with the participation of major banks and payment processors in the Russian market.
The Central Bank of Russia, the Bank of Russia, is planning to study the risks associated with crypto investment. The research titled “Risk Assessment of the Use of Cryptocurrency” has been added to the recently released “Bank of Russia Survey Plan for the Second Half of 2021”.
CBR explained in a report that the survey was conducted to “obtain information about trends in order to assess the systemic risks associated with the investment of Russian individuals and legal entities in cryptocurrencies.” Regulators will issue questions to some financial market participants, including 15 banks including VTB, Tinkoff, Alfa-Bank, Raiffeisenbank and state-owned banking giant Sberbank.
According to RBC reports, the Bank of Russia also hopes that its research can use the input of the global payment systems Visa and Mastercard, as well as the Russian Mir. Payment service providers such as Юkassa, Webmoney, Qiwi and Western Union should also receive a questionnaire from the central bank. The deadline for data submission has been set for July.
In the past few years, the Central Bank of Russia has been negative about cryptocurrencies. Moscow’s monetary policy regulator still firmly opposes the acceptance of decentralized digital currency as a means of payment in the Russian Federation, and the ruble is Russia’s only legal tender. The Bank of Russia is developing a digital version of the national legal tender and plans to launch a prototype of the “digital ruble” before the end of 2021.
In June, Elvira Nabiullina, head of CBR, advised against investing in crypto, stating that “speculative cryptocurrency” is the “most dangerous of all strategies” for investors. Nabiullina warned: “The price fluctuates greatly, and the loss may be huge.” The Communist Youth League Pravda also quoted her as saying:
The central bank never provides recommendations on investment locations, but in this special case- [investing] There is absolutely no need here.
At the beginning of last month, Nabiullina referred to cryptocurrency as a currency substitute and expressed opposition to the use of cryptocurrency in the country. Russian legislation prohibits the issuance and circulation of “currency agents”. At the same time, the CBR chair acknowledged that it is difficult to restrict the crypto market at the national level because it is fundamentally transnational.
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