The Central Bank of the Russian Federation considers crypto investments as a potential problem and Russia has dropped in a digital currencies adoption ranking
The Central Bank of the Russian Federation views BTC investments as a potential problem
The Central Bank of Russia considers citizens’ investment in digital assets to be a potentially significant problem. According to Elizaveta Danilova, the head of Central Bank’s financial stability department, BTC is highly attractive because of its “excessive volatility”, as investors want to make money quickly and easily.
“The transparency of this market is very low both here and in other countries. We need to work both on the data and on raising the awareness among the citizens about the risks of such unsecured and vulnerable investments, ” Danilova said.
According to her statement, the cross-border features of the crypto market give many complexities for the Central Bank, since Russians have the opportunity to acquire digital assets using platforms having foreign registration. Danilova is also confident that cryptocurrency derivatives are associated with “huge risks.”
Russia and Ukraine have lost their leadership in digital currencies adoption ranking
According to the Chainalysis report, Russia and Ukraine were ranked 18th and 4th in the global cryptocurrency adoption index for this year. In 2020, Ukraine was in first place, and Russia was in second.
Analysts believe that the leadership loss is associated with a transactions’ volume drop on P2P platforms. Also, this factor could be influenced by the various changes in methodology.
“This year we have included more P2P exchanges in our analysis and distributed their activity based on web traffic, rather than fiat currencies, among the most popular P2P trading pairs, as it was during the last year,” the researchers mentioned.
CoinGecko: the cryptocurrency market is recovering
According to CoinGecko’s report concerning the third quarter of this year, the digital assets market continues to recover after the major cryptocurrencies’ price decline which happened in May. Analysts pointed out that the DeFi industry is on the rise amid projects like Avalanche and Solana, and OpenSea has “monopolized” the NFT niche.
The 30 most popular digital coins’ capitalization increased by 31% over the reporting period, but the trading volume fell by almost 50% compared to the previous quarter of this year. Experts believe that this situation indicates the market’s transition to the “accumulation stage”.
We would like to draw your attention to the fact that in May 2021 Bitcoin rate fell to $ 30,000 for the first time since January. As of May 19th, the BTC price kept falling down 33% within 24 hours. Today, October 15th, BTC is in the “green zone” and is trading around 59–60 thousand USD.