Buying Bitcoin is like stepping into a minefield, says the CEO of Bank of Russia

The Russian central financial institution has reiterated its adverse stance on Bitcoin (BTC) as one of the financial institution’s prime managers in contrast the cryptocurrency to a pyramid scheme.

Sergei Shvetsov, First Deputy Governor of Russia’s Central Bank, in an interview on Wednesday, voiced the authorities’ issues about crypto investments and warned of the danger of losses for traders.

Shvetsov says native traders are more and more placing their cash into different monetary devices he calls a “financial technology pyramid,” and says Bitcoin is only one of a number of pyramid schemes. He stated that many retail traders anticipate enormous returns from investing in crypto, promoting their actual property holdings, or taking out loans to put money into Bitcoin, regardless of the danger of dropping all of their cash.

Shvetsov argues, “When you purchase bitcoin you step into a minefield and you don’t have any one to depend on however your self and nobody to guard you. The CEO burdened that the Russian authorities is not chargeable for the losses suffered by crypto traders:

“There is no need to go where you are not protected by the Russian Federation, where your money is simply being taken away and there is nothing you can do about it.”

Related: Russian courtroom orders Sber to unblock the account used for Bitcoin transactions

Shvetsov has beforehand made related remarks about the crypto business, stating final yr that the Russian central financial institution doesn’t acknowledge shopping for cryptocurrencies as an funding and is calling on the authorities and intermediaries for funding to discourage Russians from shopping for cryptocurrencies. As beforehand reported, the Russian central financial institution has additionally banned native banks from offering cryptocurrency providers.

However, crypto investments have gotten more and more common in Russia. According to a report by the World Gold Council, cryptocurrencies have been the fifth hottest funding automobile in Russia final yr after financial savings accounts, international trade, actual property and life insurance coverage, and are ranked as the hottest gold in Russia.