In its 2021 annual report, the Central Bank of Russia (CBR) noted that Russians’ growing interest in cryptocurrencies, their large crypto investments and the high risks associated with crypto operations pose a potential systemic threat.
The Central Bank of Russia highlighted the negative factors associated with digital currencies such as Bitcoin, namely the risk of disrupting currency circulation and losing the sovereignty of the national currency. The regulator again warned that digital assets increase the risk of money flowing from the traditional financial system to the still largely unregulated crypto market.
Earlier, Russia’s central bank rejected a proposal by members of the State Duma (House of Representatives) to use bitcoin to evade sanctions.