Central Bank of Russia Lays Case Against Cryptocurrency, Claims Threat to Economy


In its newly published annual report 2021, the Central Bank of Russia (CBR) highlighted that the growing appetite for cryptocurrency by Russians, considering the risks associated with crypto activities, poses a systemic threat to the Russian economy.

Adding to its long list of possible downsides the country could face from digital currencies like Bitcoin and Ethereum, the Bank of Russia noted:

“There is a risk of undermining the circulation of money and loss of sovereignty for the national currency.”

The financial institution repeated previous warnings about how digital assets exacerbate the risk of funds outflow from traditional financial systems into a relatively unregulated industry. The CBR argued that this transition of savings poses a massive threat to the financial stability of Russian banks.

Furthermore, the apex bank maintained its worry over investor protection in Russia, arguing that the crypto industry growth is simply a bubble and that cryptocurrency shows underlinings of financial pyramid schemes. The bank added that investor protection is limited and that crypto investments are at risk of permanent loss due to volatility, fraud, and cyberthreats.

Ministry of Finance in Russia for the Legalization of Cryptocurrency

On the other end, the Ministry of Finance has maintained efforts to bring about the legalization of cryptocurrency in the country, with the exemption of Bitcoin payments.

The ministry recently resubmitted a revised bill “On Digital Currency” to Moscow, which explained its approach to legalizing and regulating the crypto industry in Russia. That said, the CBR recently indicated that it could be receptive to the idea of legalizing the crypto industry.

Moving on, the Bank of Russia also cited local estimates that claimed that the volume of crypto transactions by Russia tapped $5 billion in 2021. Russia ranks as one of the top countries involved in the crypto industry and digital coin-minting.


You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.