This year has seen a surge in interest in cryptocurrencies. The 330 percent increase in Bitcoin’s value, on the other hand, has enticed many to jump in for a quick buck. The Russian Central Bank has taken note of this ’emotional’ trading and wishes to put a stop to it.
According to local reports, the central bank is attempting to slow payments to crypto-exchanges with the country’s financial institutions in order to prevent citizens from making poor monetary decisions.
The Bank of Russia has begun working with local banks to halt payments to exchanges. This is a significant step, albeit not entirely unexpected. For example, Sergey Shvetsov, First Deputy Governor of the Bank of Russia, recently expressed grave concerns about how cryptocurrency could lead to financial ruin.
“As a high-tech financial pyramid, there is a strong possibility that it will all collapse into nothing. Why will it fail? When will it come crashing down? There could be a plethora of reasons for this. There could be tens or hundreds of reasons why it won’t happen. From our vantage point, it’s a complete minefield.”
To address these issues, the central bank wants its financial institutions to discourage crypto-payments in some ways. He continued,
“We are beginning to work with the banking system to put a stop to payments to crypto exchanges, thereby eliminating opportunities for impulse purchases of these types of products.”
Since the beginning, the Bank of Russia has been opposed to cryptocurrencies. It barred local stock exchanges from listing foreign and domestic companies involved in cryptocurrencies in July.
Furthermore, it was revealed that Russia’s financial monitoring service had commissioned the development of a system capable of tracking Bitcoin and other cryptocurrencies. This would have been used to analyze user behavior and identify potential legal violations.