Central bank remains open to crypto investments, emphasizing risk assessment.
Russia’s central bank remains steadfast in its opposition to cryptocurrencies as a form of legal tender. However, there are indications that the bank may be reconsidering its stance on crypto investments. Deputy Governor Olga Polyakova recently made remarks suggesting a potential shift in the bank’s position on this matter.
During a forum, Polyakova restated the central bank’s view on crypto payments while introducing a new perspective, as reported by Russia’s government news agency TASS. This marks the first time that the central bank has publicly acknowledged the possibility of legalizing crypto investments, provided that appropriate due diligence is conducted. It is worth noting that the Bank of Russia has consistently highlighted the significant risks associated with engaging in the crypto market.
This recent statement comes shortly after the central bank revealed that almost half of the financial fraud cases in Russia in 2023 involved crypto and foreign currencies for transactions. Out of the 5,735 reported scams, 2,944 were related to financial pyramid schemes, an increase from the 2,017 cases reported in 2022. Data also shows that approximately 1,500 fraudulent schemes, accounting for 26% of the total, utilized crypto for donations, taking advantage of the anonymity feature provided by blockchain technology.
In the midst of these developments, Russia is exploring the possibility of cross-border settlements in crypto by the second half of 2024. This signals a potential shift towards adopting cryptocurrencies as digital assets, despite previous setbacks in the country’s digital assets plan. It remains to be seen how the central bank’s stance on crypto investments will evolve in the coming months.
