Accounts Chamber of Russia Announces Limitation of Cryptos as a Means of Payment

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Crypto investors should assess the high risks of their investments, since the value of digital assets depends only on the optimism of market players, as stated in an interview with RIA Novosti by the auditor of the Russian Accounts Chamber Alexei Savatyugin. He said:

“Unlike full-fledged money or bonds [cryptocurrencies] have no intrinsic value, they are not backed by anything. Unlike stocks, they do not give the right to receive payments or participate in business, unlike fiat money, they are severely limited as a means of payment. That is, the cryptocurrency depends only on the optimism of market players, and these are very high risks.”

At the same time, he believes cryptocurrencies are a very significant and noticeable design element of the global financial system:

“The total capitalization of the crypto market exceeds $2 trillion, which is more than the entire capitalization of the Russian stock market. You will never be able to ignore this.”

The auditor has supported the tough industry regulation followed by the central bank and doubted the regulator would soften its rhetoric.

According to him, the Accounts Chamber has not yet discussed any initiative of its own to regulate cryptocurrencies:

“We have the Bank of Russia, we have the Ministry of Finance, we are following their discussion with interest.”