Russian Central Bank Head compares crypto currency to pyramid scheme

Russian Central Bank Head compares crypto currency to pyramid scheme
Elvira Nabiullina

According to the head of the Central Bank, the growth rate of this crypto currency is associated with the involvement of new participants.⁠

Bank of Russia Chairman Elvira Nabiullina alerted the danger of cryptomania by comparing the current mechanisms of using crypto currency to the financial pyramid. This, as betrayed by Rosbalt, she stated at the International Banking Forum.

The head of the financial regulator was categorically against the legalization of the crypto currency. "We, in fact, do not legalize pyramids," she noted. According to Nabiullina, the growth in the value of crypto currency is due to the involvement of more and more participants in these schemes. And it is the responsibility of the authorities to warn investors on high risks.

According to Nabiullina, if, for example, behind any currency there is the state that produces it, the economy, the Central Bank, but in the case of crypto currency, this phenomenon is less clear. Therefore, equating to a foreign currency, or to any money that could be used as payments for goods and services, would be a wrong decision. Moreover, this will only maintain interest in the use of crypto currency and create the risk of undermining the circulation of money in the country.

Earlier, head of JPMorgan Chase Bank, James Daimon opposed bitcoins, calling it fraud and promised to fire employees for operations with crypto currency. He said that bitcoins can cost at least 20 thousand dollars, but the problem will eventually come to an end and he is shocked that no one sees facts on the ground.

In addition, he also noted that the lack of control of the crypto currency system attracted criminal elements, with which they to conduct their affairs.

At the same time, Anatoly Aksakov, the Head of the State Duma Financial Market Committee, suggested that the existence of such a financial system in the country will help attract foreign investments into our country, including the Crimea, bypassing sanctions. According to him, in the pilot version, the crypto currency could be launched on the exchange. Moreover, the RTS stock exchange has already prepared an appropriate platform, rules and is ready to launch the auction and ICO on its site.

Deputy Head of the Ministry of Economic Development Oleg Fomichev said that the agency would work on the idea of ​​a cryptoruble with the Central Bank and the Ministry of Finance.

At present, the turnover of crypto currencies in Russia is not regulated in any way, and for its illegal cashing, criminal responsibility is same as for illegal banking activities.

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