In Brief:
- The Central Bank of Russia is getting involved with commercial Banks to delay payment in crypto exchange.
- This move will limit “emotional” cryptocurrency purchases made by “unqualified” investors.
- This will affect peer-to-peer and over-the-counter trading platforms.
The central bank of Russia had given a statement about its tie-up with local commercial banks to delay payments made for Crypto exchange. This move is intended to limit “emotional” cryptocurrency purchases made by “unqualified” investors.
This move will affect peer-to-peer and over-the-counter trading platforms.
Bank of Russia, remains skeptical about cryptocurrencies trade and transactions. Russian officials have made clear that they will not support the crypto exchange market’s hike. The bank’s Deputy chairman Sergei Shvestov had given a statement during the speaking at “Banks of Russia – XXI Century” international banking forum.
“When it comes to buying [cryptocurrency] for investment purposes, we are skeptical about this idea. We believe it’s different from traditional assets, it’s highly risky and has signs of a pyramid scheme.”
While attending the event in Sochi, Shestov revealed that the Bank of Russia is cooperating with the country’s commercial banks. The purpose behind this coordination is to delay payments sent to cryptocurrency exchanges. In the past, CBR suggested banks block Cards and wallets, which are involved in transactions with Crypto exchanges.
The big reason for doing this is to control the excessive amount of the purchase of the crypto assets such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and other cryptocurrencies. CBR is doubtful about these transactions as centralized.
“We are starting to work with the banking system so that it slows down payments in favor of exchange offices and cryptocurrency exchanges, fencing off opportunities for emotional purchases of this kind of products.”
Recently, many countries are looking forward to accepting cryptocurrencies as legal tender. El Salvador became the first country to accept Bitcoin as a legal tender. Sergei Shvetsov also commented on the cryptocurrencies being legalized and said that this monetary system could collapse in the future. Also, he added that “There is a high probability that, as a high-tech financial pyramid, all this can fall down to zero”.
In a nutshell, Russia wants to limit the transactions made through any crypto exchange platform in order to reduce the use of cryptocurrencies in the country as they are skeptical about the future market of digital assets.
