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Russia central bank says bitcoin is a financial pyramid: “your money will be taken away”

Bitcoin is a pyramid scheme and, by buying it, a person enters a minefield” – said the deputy chairman of the Russian central bank, Sergei Shvetsov, in an interview.

Russia central bank says bitcoin is a financial pyramid: "your money will be taken away"

Russia central bank says bitcoin is a financial pyramid: “your money will be taken away”

According to him, many people invest in alternative instruments and often sell real estate or borrow money from relatives to “bury the money in the field of miracles”.

“It is a big problem that our citizens are not familiar with the rules of the capital market, where the promised return reflects the level of risk. And if you want to win many, many percent with that money, then the probability of losing everything is huge,” he added.

The vice president of the Russian Central Bank also recommended that all Russians who are not familiar with the financial market should not risk investing in cryptocurrencies.

He also said that the Bank of Russia will not legalize bitcoin and that people can lose money and the government will not be able to do anything.

“We also tell citizens about this that you don’t need to go to a place where you are not under the protection of the Russian Federation, where your money will simply be taken away and you can’t do anything about it.”

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According to a March 2021 investment survey, 52% of unskilled Russian investors have traded bitcoin.

In February, when bitcoin rose in price at an accelerated pace, the president of the Central Bank pointed to the high volatility of the cryptocurrency.

Using such an asset carries risks, he said. Furthermore, “bitcoin can be actively used for all kinds of questionable transactions,” he added.

Shvetsov, who is curiously a former soccer player, continued to criticize bitcoin and described it as a “technological financial pyramid”.

He warned that Russia has no power to prevent such coups if people lose their funds.

“We start closing websites, banks stop payments. But there are other channels that appear very quickly where a person cannot be helped.”

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