Is interest in the crypto industry waning? The Russian Central Bank thinks it as it made its opinions public at a recent finance innovation forum held in Sochi.
When BTC almost hit the $20,000 mark in late-December of 2017, interest in crypto shot through the roof as the flagship cryptocurrency was at an all-time high. With its prices coming down to, at press time, $6,600 it has been an undulating year of fluctuations that has left many users flustered.
New Report from Russia’s Central Bank
The Russian Central Bank recently stated it believes that interest in crypto is on the slide. Russian economist and head of the Russian Central Bank, Elvira Nabiullina, outlined why she believes enthusiasm in crypto is now gradually tapering off when talking to the Russian news agency RIA Novosti at the forum.
“Fortunately, the crypto fever has begun to diminish. Technologies such as blockchain have inspired great enthusiasm, but now, as far as we can see, the approach to them is more sober.”
Using Blockchain for Positive Reasons
The call for investors to exercise more caution when purchasing crypto is hardly a new way of thinking. It's an approach various regulators throughout the world have taken that doesn't stiffle innovation, yet warns money invested could be lost.
The Central Bank of Russia’s head-honcho also had words of praise for entrepreneurs looking to establish crypto startups and blockchain enterprises. Nabiullina talked about how important it is that crypto startups use innovative blockchain solutions for their projects, and how this is better than using crypto in combination with marketing buzzwords to wow potential investors.
Although Nabiullina’s thoughts on waning crypto interest were the main talking point to come out of the forum, the praise for startups and also ICOs leveled out the sentiments. She believes that a solid ICO model is “a perfect method to raise funds.” But she did touch on the fact that the current lack of regulatory measures for ICO projects creates conditions where fraud can thrive.
Earlier this year, the Russian economist notably sated the country's central bank was "categorically against" regulating cryptocurrencies or considering them foreign currency. She has called cryptos "money surrogates," that wouldn't be featured on Russian exchanges.