Bank of Russia exec likens Bitcoin’s volatility to a minefield

The Central Bank of Russia has not given up its pessimistic opinion on Bitcoin and has once again expressed concerns over the rise in the number of investors seeking Bitcoin exposure.

Sergey Shvetsov, one of the executives of the Bank who acts in the capacity of the first deputy governor, emphasized the bank’s position on cryptocurrencies. According to him, Bitcoin is no different from pyramid schemes.

Speaking in a Wednesday interview, the deputy governor stressed that:

Buying the same Bitcoin, a person enters a minefield, where besides himself, he has no one to rely on, and no one can protect him. We also tell citizens about this that you do not need to go where you are not under the protection of the Russian Federation, where your money will simply be taken away and you cannot do anything about it.

Shvetsov went forward to advise crypto traders, especially the inexperienced ones, to refrain from trading with borrowed funds and from liquefying other assets to raise trading capital, considering the associated risks.

The bank executive, who has never really supported Bitcoin or any other crypto, stated last year that the Bank of Russia did not recognize crypto purchases as an investment. He went a step further to urge the government and financial intermediaries to discourage Russians from buying cryptocurrencies.

Since licensed Russian brokers do not provide access to digital currencies, many Russian citizens have opted to transact crypto using foreign platforms. And despite the rise of crypto investments in Russia, it only ranked fifth among the most popular investment choices in the country, just a little bit higher than gold.