The central bank of Russia is trying to estimate how many bitcoins (BTC) domestic investors are holding in the middle of a huge amount of money that is not returned to banks after a withdrawal due to the pandemic.

According to the head of the financial stability department of the Central Bank, Elizaveta Danilova, the Bank of Russia is conducting a survey of domestic cryptocurrency investors to assess the volume of investments in cryptocurrency in Russia.

“We need to work with data and raise public awareness of the risks of such investments, which are not supported by anything,” Danilova said in an interview with Reuters published on the official website of the Bank of Russia on Thursday.

The official argued that the cryptocurrency market lacks transparency not only in Russia but also in other jurisdictions, citing the high risk of cryptocurrency products such as bitcoin futures or exchange-traded funds. – The problem is that the market is cross-border. People can invest in cryptocurrencies through foreign brokers. According to Danilov, some major foreign exchanges trade cryptocurrency derivatives, which is fraught with significant dangers.

The efforts of the Bank of Russia to analyze the volume of investments in domestic cryptocurrencies are associated with the reluctance of Russians to invest in banks lately. According to Danilova, up to 2.6 trillion rubles ($ 36 billion) have not been returned to banks after a massive withdrawal of funds in 2020 due to the COVID-19 pandemic.

Some existing data show that investing in cryptocurrencies has become very popular in Russia. According to a survey conducted by the Russian Association of Forex Dealers, 77% of Russian investors prefer bitcoin over traditional investment vehicles such as gold and currencies.

On the subject: Russia has no plans to follow in the footsteps of China and directly ban cryptocurrency, says the Deputy Minister of Finance.

Amid the growing popularity of cryptocurrencies, the Bank of Russia has called on the government to restrict cryptocurrency investments by non-accredited investors and has reportedly launched a legal initiative to restrict transactions on cryptocurrency exchanges to avoid “emotional” purchases of cryptocurrencies.

While the Bank of Russia is skeptical about digital currencies, Russian President Vladimir Putin believes that cryptocurrencies such as bitcoin are well suited for transferring money around the world and could one day become a “battery”.

Source: CoinTelegraph