Nabiullina warned of possible rapid drop in bitcoin price

The head of the Bank of Russia spoke about the interest of the population in cryptocurrency and its risks.

Bitcoin is veryvolatile asset, and it can just as quicklyto fall in price, as well as increased, warned the head of the Central Bank Elvira Nabiullina during a press conference. She noted that the population has an interest in the asset, but the same risks were and remain, and may be intensifying.

“Such price increases only show potentialthe volatility of such private cryptocurrencies. The price of bitcoin does not even affect its essence; in our opinion, it is not a currency, "said the Chairman of the Bank of Russia. She added that the cryptocurrency can be actively used for "all kinds of questionable transactions."

On January 1, the law “On digitalfinancial assets ". It defines cryptocurrency, but prohibits its use in Russia to pay for goods and services. Advertising of payments with digital money also falls under the ban.

Earlier, the Central Bank refused to the Russian Associationcryptoindustry and blockchain (RAKIB) in the launch of the National Mining Pool (NMP) project. The project provided for the possibility of collective mining of cryptocurrencies for the efficient use of electricity.

The Bank of Russia called the project inexpedient indue to the high risks of money laundering, as well as the inconsistency of the service with the formulated state policy in the field of cryptocurrency regulation.

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