Central Asian Central Banks Agree on Risks of Cryptocurrencies

After the Russian Central Bank spoke against Bitcoin legalization, several other central banks followed the same tune.

At the XXXVIII Meeting of the Central Banks Governors' Club of Central Asia, Black Sea region and Balkan Countries, which was hosted by the Bank of Russia, the regulators unanimously considered that the high pace of FinTech’s development and impact on the financial sector does not only create new opportunities for consumers but also carries risks associated with the unpredictable consequences.

The bank heads and representatives discussed financial technologies, including cryptocurrencies.

"A significant part of the discussion was devoted to the development of cryptocurrencies, and members of the club expressed serious concerns about the risks arising from their spreading. It was noted that such risks were associated with increased opportunities for money laundering and terrorist financing operations. Besides, cryptocurrency market has shown high volatility," said the Central Bank of Russia.

Meanwhile, the participants of the meeting noted the global growth in demand for promising financial technologies. In their view, the high rate of development and impact on the financial industry not only create new opportunities for consumers but also carry risks associated with the consequences of their implementation.

The meeting in Moscow was attended by representatives of 20 central banks, including the delegations from China and the central banks of the Eurasian Economic Union (EAEU) member countries. Representatives of the Hungarian Central Bank, whose club membership was supported by its active members, took part in the meeting for the first time.

"Cryptocurrency is treated differently. Some countries legalize it, some ban it, and other countries keep it in the gray zone. What is now happening in the cryptocurrency market is an artificially created hype," said Golubovsky.

The position of most of the Central Asian countries is quite different from the general trend suggesting that 60% of the central banks worldwide plan to apply blockchain technology sooner or later.