Cryptos Are No Danger to The World of Finance, Says Russia’s Central Bank

post image

Bitcoin and its brethren do not pose any threat to the global financial system due to the fact that the overall volume of cyber assets financial operations is not high enough. This is the conclusion made by the central bank of the Russian Federation.

On May 30, the country’s Central Bank published a report, in which there was stated the institution’s precise position on the dangers that come from digital tokens.

Our top trading bots

No Danger…

In the overview of financial stability, released by Russia’s Central Bank, the term “cryptocurrencies” is not used. The Financial Stability Board referred to this phenomenon as the “crypto assets.” According to that, cryptos can be considered as financial assets underpinned by the use of cryptography as well as DLT, or, as it is better known, the blockchain.

In the Russia’s top government’s document, it is emphasized that digital assets are no risk to the stability of the traditional financial world. The reason is that at the moment, as the bank stated, the volume of conducted crypto-transaction is very low when compared to other types of global operations. Ultimately, it was noted in the document that the crypto-niche is very inessential on the worldwide market.

…until The Market Grows

However, the status-quo may not remain for always. Bitcoin and its ilks can really pose risk to worldwide financial stability in case the crypto-market expands and conquers more attention from:

  • institutional investors
  • retail investors
  • financial establishments (like banks)
  • other market actors

At the same time, the current price instability of cryptos is the primary factor which prevents them from becoming:

  1. A credible standard of value
  2. Means of exchange
  3. Store of value

Still Not Safe To Pile Into Cryptos

On top of everything, the document also delineates a range of risks related to the purchase of cryptos (or the investment in them). Among them, there are the following:

  • Insufficient investors’ rights protection
  • Risks in the sphere of funds laundering prevention
  • Jeopardies in the niche of terrorism financing prevention
  • Lack of market liquidity
  • Operational threats
  • The use of leverage


This year May the country’s State Duma adopted novel legislation to regulate cyber money sphere at first reading. The new law determines both cryptos and tokens as possessions. Moreover, it defines various peculiarities for dealing with tech trends, connected to DLT.

Interestingly, a week ago another Russian state-owned bank – Sberbank – on par with Russia’s National Settlement Depository unveiled its crypto-plan. The bank and the depository are launching a pilot of Russia’s first ICO.

According to the opinion of the head of the bank Igor Bulantsev, Russian token offerings niche has yet a lot to offer. The public figure also emphasized that lots of the bank’s customers are curious about the novel way of fundraising.

Earlier it was reported that Russia's top financial institution gathered that the wholesale markets in Moscow, e.g., shopping center "Moscow," "Sadovod" and "Food City," had become pathfinders and leaders in proposing the purchase of cyber assets.

Bitcoin Will Overcome All-Time Records by 2020, Says Quoine CEO
On December 3 bitcoin saw another low of $3,800, one of the lowest rates within the past few weeks. On November 14, the most valuable cyber-coin in the...
Here’s Why Crypto-Market Shed $700 bln Since January
The entire market of cyber-coins lost almost $700 billion since the beginning of 2018. At present, the crypto-ecosystem is going through a massive sell-off,...
The Fourth Court Case Recognizes Cryptos as Commodities
Another court case involving CFTC —the American Commodity Futures Trading Commission — implies that cyber-coins are trade goods. Therefore, their issuers...
Starbucks Partners With Microsoft to Allow Crypto-Payments
Starbucks, the American coffee-company, which is a worldwide household name, is to start accepting bitcoin and its brethren as means of payment in its branches.At...
Five Coins Rise Up Amid News Coinbase Might Add Them
An immense cyber money bourse in the US – Coinbase – might add five other digital coins to its platform. At the moment, the company is examining the potential...
IBM To Issue a ‘Green’ Token On Stellar Blockchain, Replenish The Environment
The tech titan IBM is emitting its ever-first token. For that, the multinational company, headquartered in New York, will use public blockchain, provided...
Facebook Sets Up A Blockchain Group Led By Coinbase Board Member
The head of Facebook’s Messenger David Marcus, who had been leading the development of the app for four years, announced he is quitting the position. Now...
Polish Central Bank Admits Campaigning Against Cryptos Via YouTube
Bitcoin and its brethren must have tough times as some governments do not only try to tackle them but also run anti-cyber-money campaigns online, to drive...
Coinbase US Clients Can No Longer Add Credit Cards As a Payment Option
Digital assets trading venue Coinbase is making the life of crypto enthusiasts more “interesting.” Not long ago its users were informed about the fact that...
Economist, Who Predicted 2008 Crisis, Says Bitcoin Will Drop to Zero
Famous American economist, who recently labeled bitcoin as the most massive bubble in history, has now said that the price of this crypto-coin is not...
‘They Will Come To a Bad Ending’ – Billionaire Buffet on Cryptos
Rich and influential in the financial world people keep bullying bitcoin. On Wednesday, January 10, bitcoin’s long-term enemy Warren Buffet “predicted”...
Japan’s Internet Giant DMM Launches Bitcoin Exchange With 7 Cryptos
What could Japanese crypto enthusiasts have dreamt of? Probably, about the emergence of new beneficial exchange platforms, that would allow them to take...
New Fork is Out: Bitcoin God Finally Executed With a Delay
As it was expected, ultimately, the hard fork of Bitcoin – Bitcoin God – successfully born on December 27. However, this happened with a two-day setback....
Will Amazon Launch Blockchain-Based Services?
Despite the rumors, Amazon Web Services (AWS) will not offer services on Blockchain technology in the nearest time. CEO Andy Jassy made a statement at...
Over 90% Blockchain Projects Don’t Live Longer Than a Year
According to data collected by Deloitte, last year in the repository on GitHub there was created more than 26,000 new projects related to blockchain. The...