The Central Bank of Russia (CBR) has set out to investigate the risks associated with cryptocurrency investments. The regulator is going to conduct a dedicated study with the participation of major banks and payment processors operating in the Russian market.
CBR Includes Crypto in its Survey Program for 2021
Russia’s central bank, known as the Bank of Russia, is planning to conduct research into the risks involved with crypto investments. The study titled “Assessing the Risks of Using Cryptocurrencies” has recently been added published “Bank of Russia Survey Program for the Second Half of 2021”.
The survey will be conducted “to obtain information on trends to assess systemic risks with respect to investments of Russian individuals and legal entities in cryptocurrencies,” CBR explained in a note. The regulator will send questions to a number of financial market participants, including 15 banks such as VTB, Tinkoff, Alfa-Bank, Raiffeisenbank and state-owned banking giant, Sberbank.
Bank of Russia also wants its study to reflect input from global payment systems Visa and MasterCard as well as Russian mir, RBC reported. Payment service providers such as kassa, Webmoney, Qiwi, and Western Union should also expect to receive central bank questionnaires. The deadline for data submission has been set as July.
The Central Bank of Russia Remains Hostile to Cryptocurrencies
Over the past few years, Russia’s central bank has maintained a negative attitude towards cryptocurrencies. Moscow’s monetary policy regulator strongly opposes the acceptance of decentralized digital money as a means of payment in the Russian Federation, where the ruble is the only legal tender by law. The Bank of Russia is working on a digital version of the national legal tender and aims to unveil the ‘digital ruble’. prototype by the end of 2021.
In June, the head of CBR, Elvira Nabiullina, advised against crypto investing, referring to “speculative cryptocurrencies” as “the most dangerous of all strategies” for investors. “The price is very volatile and the losses could be huge,” warned Nabiullina. Komsomolskaya Pravda also quoted him as saying:
The central bank never gives advice on where to invest, but in this particular case – [investing] Definitely not necessary here.
Earlier last month, Nabiullina called cryptocurrencies a monetary surrogate and opposed their use in the country. Russian law prohibits the issuance and circulation of “money surrogates”. At the same time, the CBR President acknowledged that it is difficult to ban the crypto market nationally because it is fundamentally international.
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