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Bank of Russia Reiterates Opposition to Cryptocurrencies

Bitcoin fell after central bank governor said: “We are advocating for Russia’s financial infrastructure not to be used for investments in cryptocurrencies”

The Bank of Russia's management board
The Bank of Russia's management board came out in opposition to crypto at its meeting in December 2021. Photo: Reuters.


Russia’s central bank remains opposed to cryptocurrencies, its governor said on Friday, highlighting their use in illegal operations.

The central bank is sceptical about cryptocurrencies, which are often used for illegal operations, its governor told a briefing on Friday.

“We are advocating for Russia’s financial infrastructure not to be used for investments in cryptocurrencies and this is possible to implement,” Elvira Nabiullina, governor of the Central Bank of the Russian Federation, said.

Sources told Reuters on Thursday that the Bank of Russia, as it is known, sees risks to financial stability in the rising number of crypto transactions and advocates a “complete rejection” of them, sending bitcoin falling on Friday.

The bank’s management board came out in opposition to cryptocurrencies at its December meeting.

“In the Bank of Russia’s opinion, if financial institutions provide services related to transactions with crypto assets and their derivatives, this will not serve the interests of investors in the financial market and will involve high risks,” the bank said in a statement.

The statement followed the bank’s decision to raise its key rate by 100 basis points to 8.5%, in line with expectations.

Inflation is developing above the Bank of Russia’s October forecast, with indicators reflecting the most sustainable price movements well above 4%.

“The end of the hike cycle is not guaranteed,” Dmitry Dolgin, chief Russia economist at ING, said.


  • George Russell, with Reuters

This page was upgraded on January 21, 2022 for style purposes.



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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


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