Central Bank of Russian issued the report on May 30, saying that cryptocurrency is not the threat to the global financial stability, as the volume of the transaction is extremely low.

The research states that instead of the term “cryptocurrency”, Financial Board decided to utilize the term “crypto asset”, which is considered a financial instrument based on applied cryptography.

The paper mentioned the risk that can be inflicted on the financial world in case cryptocurrency market continues its growth with the attraction of “whale” investors, big banks, and institutional investors. In accordance to the report, high volatility of the cryptocurrency market prevents it from being a reliable and standardized investment tool.

What is more, the paper figured the risks that are associated with the crypto property. Those include the lack of protection of the rights’ of investors, the money laundering activities and financing of the terrorism.

Last week Russian Sberbank announced the piloting of the country’s first official ICO, which brings a lot of hope for Russia’s crypto market. On the same page, Parliament approved a new legislating for cryptocurrency regulation.

Sources:

https://cointelegraph.com/news/central-bank-of-russia-crypto-assets-do-not-pose-risk-to-global-financial-stability