Russia's Central Bank Says It Would Support a Cryptocurrency Ban

The Bank of Russia, Russia’s central bank, has shown support for a potential ban on cryptocurrencies as it considers them too risky for investors.

According to state-run news agency RIA, the financial institution revealed it believes “private cryptocurrencies cannot be equated with fiat money and cannot be legal tender.” The Bank of Russia reportedly added:

If it is decided to ban cryptocurrencies as a means of payment at the legislative level, we consider it appropriate to support this position.

The central bank’s representative justified its support for a potential cryptocurrency ban, adding that it believes “cryptocurrencies carry significant risks” related to money laundering and terrorism financing, as well as in “conducting exchange transactions due to sharp exchange rate fluctuations.”

Back in October the head of the Russian central bank, Elvira Nabiullina, revealed that after conducting research the financial institutions didn’t see a strong reason to launch a national cryptocurrency, and warned investing in cryptocurrencies is risky.

According to RIA she compared investing in crypto to gambling in a casino, saying there’s “worldly wisdom that free cheese is only in a mousetrap: easily earned money quickly leaves.” In October of last year Nabiullina also claimed cryptocurrency “fever” was waning, adding investors were taking a “more sober” approach to the space.

It’s worth noting a cryptocurrency mining firm based in Russia, the Russian Mining Company (RMC) has revealed it plans on being able to mine 20% of the remaining bitcoin in the space, which would imply a significant investment in mining equipment and in the cryptocurrency space.

Featured image by Sam Oxyak on Unsplash.