While various governments around the world are starting to embrace cryptocurrencies, the Central Bank of Russia is urging the country to stay away from them.
In an interview with the local newspaper Komsomolskaya Pravada, Central Bank chief Elvira Nabiullina said the prices of cryptocurrencies are highly volatile that could easily wipe out investors’ money.
She was also asked if people should invest in cryptocurrency, and while she didn’t exactly said “no”, cryptos being unstable than any other investments have clearly sent her message.
Nabiullina said that it is not the Central Bank’s duty to directly promote any investment ventures, but in the case of cryptos, it has the responsibility to discourage everyone from investing in them.
She said that cryptocurrencies’ greatest danger is their volatile nature, which could always put investors in a losing streak without any warning.
The Central Bank chief also added that bank deposits are safer investments, but just like any investments, they also pose some risks, and these risks are better handled by investors who have an appetite for them.
She also reminded everyone to be vigilant in investments that promise zero risk and high rewards because, according to her, investments don’t work that way.
Nabiullina said that, yes, virtual assets would be the future of the financial world, but it wouldn’t be cryptocurrencies, but Central Bank Digital Currencies (CBDCs), which are digital currencies issued by governments.
But Oleg Deripaska, one of Russia’s wealthiest people, has criticized Russia’s Central Bank for its resistance in embracing cryptocurrencies, which, according to him, prevents the nation’s progress.
He also added that Russia should follow El Salvador’s example of embracing Bitcoin’s massive potential to improve a country’s economy.
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