The Bank of Russia presented its objections to the concept of regulating the circulation of cryptocurrencies, which was developed by the Ministry of Finance. Forbes reviewed the letter, the regulator confirmed that it had been sent to the department.
The Central Bank believes that:
- The legalization of digital currencies will create conditions for the growth of investments in the instrument, which is actually a “financial pyramid”. Investment limits for unqualified investors will not remove these risks.
- The selection of qualified investors assumes that the investor weighs all the risks based on his knowledge. But cryptocurrency rates depend on speculative factors. In addition, if a foreign regulator bans a cryptocurrency, it will depreciate significantly, and in this case, financial literacy will not help the investor.
- If regulated financial institutions participate in the circulation of digital money, this will create an “illusion of state protection” for people. And in the event of a collapse in cryptocurrency rates, they will demand compensation for their losses from the budget.
- The mining industry will not benefit the economy: its competitiveness in the country is not associated with the development of technology, but with cheap electricity. At the same time, unproductive demand for it can limit production and jeopardize the energy supply of enterprises and residential facilities.
- Cryptocurrencies create risks of withdrawing money from the real economy, the stock market and the banking sector, and other threats.