Russian bank executives say buying bitcoin is like entering a minefield

The Central Bank of Russia once again reiterated its negative stance on Bitcoin (Bitcoin), an executive of the bank compared cryptocurrency with the pyramid scheme.

Sergey Shvetsov, First Deputy Governor of the Bank of Russia Express The authorities’ concerns about cryptocurrency investments in an interview on Wednesday warned investors of the risk of losses.

Shvetsov stated that local investors are increasingly investing money in alternative financial instruments that he calls the “technical financial pyramid”, noting that Bitcoin is just one such pyramid scheme. He said that many retail investors expect huge returns from investing in cryptocurrencies, selling their real estate assets or loans to invest in Bitcoin, despite the “enormous” risk of losing all their funds.

“When buying Bitcoin, a person enters a minefield, and no one can rely on him except himself, and no one can protect him,” Shvetsov argued. The executive emphasized that the Russian government is not responsible for the losses of cryptocurrency investors:

“There is no need to go to a place that is not protected by the Russian Federation, where your money will only be taken away and you will be powerless.”

related: Russian court orders Sber to unlock accounts used for bitcoin transactions

Shvetsov had previously made similar remarks on the cryptocurrency industry, saying that the Bank of Russia last year Not treating the purchase of cryptocurrency as an investment And called on the government and financial intermediaries to prevent Russians from buying cryptocurrency.As previously reported, the Bank of Russia has also Prevent local banks from offering cryptocurrency service.

However, cryptocurrency investment is becoming more and more popular in Russia. According to the report of the World Gold Council, Cryptocurrency is the fifth most popular investment tool In Russia, after savings accounts, foreign exchange, real estate and life insurance, it ranked slightly higher than gold investment last year.