Bank of Russia estimates Bitcoin inventory volume to be $ 36 million leaving the bank

Russia’s central bank is trying to measure the amount of Bitcoin (BTC) held by local investors amid a large amount of money that does not return to banks after withdrawals caused by the pandemic.

According to Elizaveta Danilova, head of the central bank’s financial stability department, the central bank of Russia is studying cryptocurrency investors in the country to estimate the volume of crypto investments in Russia.

“We need to work both on data and on raising public awareness of risk,” Danilova said in a Reuters interview published on October 14 on the official website of the Central Bank of Russia. Risks of such investments without any support.

The official argued that the crypto market lacks transparency not only in Russia but also in other jurisdictions, pointing out the higher risks of crypto derivatives such as bitcoin futures or currency funds. “The challenge is the cross-border market. People can invest in cryptocurrencies through foreign intermediaries. Some of the major forex exchanges that trade crypto derivatives carry enormous risks, ”said Danilova.

The efforts of the Central Bank of Russia to analyze the volume of local crypto investments can be attributed to the recent reluctance of Russians to deposit funds in banks. Danilova said up to 2.6 trillion rubles ($ 36 million) were not returned to banks after massive withdrawals in 2020 due to the COVID-19 pandemic.

Some existing data shows that crypto investments have become extremely popular in Russia. According to a survey by the Association of Foreign Exchange Traders of Russia, up to 77% of Russian investors prefer Bitcoin to traditional investment vehicles such as gold and foreign exchange.

Related: The deputy finance minister says Russia has no plans to follow China’s move and ban cryptocurrencies (Bitcoin) entirely

Amid the growing popularity of cryptocurrencies, the Russian central bank has urged the government to restrict crypto investments by unaccredited investors and reportedly launched a legal initiative to slow down transactions for cryptocurrency exchanges in order to keep buying cryptocurrencies on a “perceived” basis. Way to avoid.

Although the Russian central bank has taken a skeptical stance on cryptocurrencies, Russian President Vladimir Putin believes that cryptocurrencies like Bitcoin are good for transferring money around the world and may one day become a “means of accumulation.”