The head of Russia’s central bank, Elvira Nabiullina warned investors to be wary of cryptocurrencies, saying the prices of the digital assets are very volatile and investors are in real danger of losing their funds.
Elvira Nabiullina, the president of the Russian Central Bank, expressed her opinion on whether or not people should participate in the cryptocurrency market. She suggested in an interview with the local daily Komsomolskaya Pravda that investing in digital assets is riskier than any other strategy:
”Speculative cryptoassets are surely the most dangerous strategies of all. The Central Bank never gives advice, where to invest, but in this particular case – here [one] should definitely not [invest].”
The primary concern with the market, according to the top banker, is its volatility, which can lead to massive losses:
”The price is very volatile, losses may be appalling.”
Nabiullina, on the other hand, defended bank deposits as a better place for investors to put their money. However, she cautioned that even in this situation, people should use caution and weigh their risks:
”It is necessary to closely explore the products, take a critical look at ads, particularly when you are told that there are no risks here, whereas yields are high, it doesn’t work that way.”
Previously, the central bank official predicted that virtual assets will be the financial world’s inevitable destiny.
Despite this, she believes that central bank digital currencies, rather than cryptocurrencies like Bitcoin, will be the next big thing.
They will be governed by the government, and one e-rouble will be worth one cash rouble.
The Central Bank of Russia continues to make unfavorable comments about cryptocurrencies and trade laws.
However, Oleg Deripaska, one of Russia’s richest men, has accused the institution of making decisions that are detrimental to the country.
The tycoon, who was once Russia’s richest man, went on to say that the world’s largest country by landmass should follow El Salvador’s lead and accept Bitcoin as a form of payment:
”Even poor El Salvador, known for being close to oft-mentioned Honduras, has realized the need for digital currencies and taken a simple path, recognizing Bitcoin as a means of payment.”
Deripaska also stressed the importance of Russia’s ability to conduct business with the rest of the world, urging the central bank to create a “genuine financial instrument permitting independence in foreign trade settlements.”