Breaking News

Russia's Annual Financial Stability Report: There is a clear bubble in Bitcoin and investors may suffer "substantial losses"

The Russian Central Bank issued a report yesterday warning investors of the risk of investing in cryptocurrencies.

According to the TASS news agency of the Russian Federation , the Annual Financial Stability Report released by the Central Bank of Russia pointed out that there is a clear bubble in the cryptocurrency market, which may cause "substantial losses" to investors.

The report continues to assert:

"The task of national regulators is to minimize these risks by developing a coordinated way of overseeing the cryptocurrency market and limiting potential high-risk investments and transactions.
This is not the first time a central bank has stood up against cryptocurrencies. Last month, Sergei Shvetsov, deputy central bank governor, said the bank is trying to stop non-Russian websites from selling bitcoins across the country.

At that time, he said that bitcoin brought "unreasonably high risks", exactly in accordance with the views expressed in this month's report. He also compared Bitcoin to a pyramid scheme because of the high rate of return that bitcoin makes over the short term. These remarks are part of Russia's apparent effort to limit its bitcoin exchange. In September, Alexey Moiseev, Russia's deputy finance minister, said he expected the government to ban all encrypted currency payments. In the meantime, Nikolay Nikiforov, Russia's communications minister, also reiterated that Bitcoin transactions will never be legal in the country .
However, other Russian bankers have their own different views. German Gref, CEO of Russia's state-owned bank Sberbank (Russian Federation Savings Bank), believes that the wide spread of Bitcoin and cryptocurrency can not be ignored and calls for the legalization of cryptocurrencies .