The Russian Ministry of Finance has issued a warning about the risks of cryptocurrencies for most of the country’s citizens.
Ivan Chebeskov, director of the ministry’s financial policy department, said digital currencies are high-risk financial instruments and should not be considered a form of savings.
At a conference on the future of finance, Chebeskov stated that cryptocurrencies do not generate income and are therefore not suitable for savings purposes, especially those with middle incomes and savings.
“We absolutely do not want citizens’ savings to be converted into digital currencies”said Chebeskov.
“Cryptocurrency is for the rich”
He also stated that only the richest Russians, accounting for about 10-15% of the capital available for investment, could make sense to invest in these assets.
According to Anatoly Popov, deputy chairman of the board of directors of Sberbank, about 13 million people in Russia, about 9% of the population, currently own cryptocurrencies, with at least 1 million active users.
However, the Ministry of Finance does not support a ban on cryptocurrencies, nor does it discourage all Russians from avoiding cryptocurrencies.
Instead, Chebeskov said digital currencies could suit professional investors who already have experience investing in assets such as bonds and real estate.
Despite the warning, the Central Bank of Russia has taken a tougher stance on cryptocurrencies, warning of possible sanctions for investors in this market.
The bank reported that more than 800 cryptocurrency wallets related to Russian individuals have already been blocked.
While the Central Bank tries to ban cryptocurrencies, the Ministry of Finance defends the regulation and taxation of these assets. The ministry is also interested in allowing cryptocurrency miners to enter the country.
Russian lawmakers are looking at options for dealing with cryptocurrencies, including the possibility of launching a state-owned cryptocurrency exchange to facilitate trade abroad.
However, senior policymakers have recently suggested that foreign brokers may be a preferred option for trading firms.
Amid restrictions imposed by the Russian state on foreign exchange operations, the Ministry of Finance wants to ensure that citizens do not trust cryptocurrencies as an alternative to savings.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
