The Central Bank of Russia has no plans to invest in cryptocurrencies even though Bitcoin is attracting attention from many countries.
The CBR warns of the high risks of cryptocurrencies, does not support their use as a means of domestic payment, but does not rule out their application for international trade and sophisticated investors.
MAIN CONTENT
The Central Bank of Russia is not considering purchasing Bitcoin or cryptocurrencies as official reserves.
Cryptocurrencies are assessed as risky and are not allowed to be used as a means of domestic payment.
Many neighboring countries of Russia are moving towards integrating cryptocurrencies into national reserves.
Is the Central Bank of Russia planning to buy Bitcoin or cryptocurrencies as reserves?
Elvira Nabiullina, Chairperson of the CBR, asserts that the bank does not view cryptocurrencies as investment vehicles for national reserves due to their risk and high volatility. The CBR only allows sophisticated investors and international traders to access cryptocurrencies.
"Given the risk and volatility, the central bank cannot invest in cryptocurrencies."
Elvira Nabiullina, Chairperson of the Central Bank of Russia, International Financial Forum 2024, St. Petersburg
This policy is also supported by the Ministry of Finance of Russia. Deputy Minister Vladimir Kolychev emphasized that the national fund prioritizes liquid and stable value assets. He stated that if the fund reaches 7 to 10% of GDP, more profitable but still safe investment options could be considered.
Does the CBR allow cryptocurrencies to be used as a means of domestic payment?
The CBR completely opposes the use of cryptocurrencies for domestic payments, where the ruble is the only legal tender. However, cryptocurrencies can be used in foreign economic activities and for highly qualified investors.
"We do not accept cryptocurrencies as a means of domestic payment, but agree to use them for foreign trade activities and professional investors."
Elvira Nabiullina, CBR Chairperson, 2024
This stance confirms the difference in the application of cryptocurrencies between domestic and international markets, helping to manage systemic risks while harnessing economic potential.
Why is Russia lagging behind neighboring countries in integrating cryptocurrencies into reserves?
According to Stanislav Korop, Head of the CBR Financial Technology Department, the establishment of national cryptocurrency reserves has not been seriously considered due to the significant risk of value depreciation. He cited the example of the United States building reserves from seized assets, creating a difference in the nature of reserves.
"Our attitude towards cryptocurrencies remains cautious due to their high volatility, not considering them as traditional reserve assets."
Stanislav Korop, Head of the CBR Financial Technology Department, Russian Digital Industry Conference, June 2024
Meanwhile, neighboring countries like Ukraine and Kazakhstan are researching proposals to include cryptocurrencies in foreign exchange reserves or establish state reserve funds, indicating a trend towards gradually expanding and diversifying the country's asset portfolio.
Comparison of Russia's cryptocurrency reserve stance with neighboring countries
Criteria Russia Ukraine Kazakhstan Cryptocurrency reserve policy Not considering purchases, restricting usage Proposing to add cryptocurrencies to foreign exchange reserves Supporting the establishment of a state cryptocurrency reserve fund Conditions for use Only for sophisticated investors, foreign trade Under discussion in parliament Law being presented to Parliament Attitude towards volatility Cautious, seen as high-risk assets Accepting risks for diversification Positive assessment, seen as an opportunity
Frequently Asked Questions
Does the Central Bank of Russia allow the purchase of cryptocurrencies as reserves? No, the CBR assesses cryptocurrencies as too volatile and risky to be used as official reserves. Can cryptocurrencies be used as a means of domestic payment in Russia? No, the CBR only accepts the ruble as the sole legal tender in the country. Who is allowed to own cryptocurrencies in Russia? Only highly qualified investors and companies engaged in international trade are permitted. Is Russia keeping up with cryptocurrency trends in the region? Currently, Russia is lagging behind some neighboring countries like Ukraine and Kazakhstan in integrating cryptocurrencies into reserves. Why is the CBR concerned about cryptocurrencies? Cryptocurrencies have high volatility and can easily lead to financial losses, so the CBR considers them risky assets unsuitable for national reserves.
Source: https://tintucbitcoin.com/ngan-hang-nga-khong-mua-bitcoin/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
