Bitcoin ‘Has No Future’ Top Russian Lawmaker Says

According to the chairman of the Financial Market Committee of the Russian State Duma, the cryptocurrency market is extremely unpredictable and, in the face of global uncertainty, cannot be considered a substitute for traditional financial services.

Anatoly Aksakov told Parliament on Wednesday that it would be good for Russians to invest in the country's digital financial assets (CFA). Lawmakers noted that TFA payments will be accelerated this year.

“I'm pretty cautious about bitcoin. Cryptocurrency prices have rebounded as US financial markets have been volatile amid fears of a potential crisis. When this crisis occurs, investors will look for alternative assets. "Obviously, bitcoin looks attractive to them," he argued.

However, Aksakov emphasized that the price of bitcoin is so volatile that investors suffer huge losses.

Today's cryptocurrency market is very unpredictable and in my opinion bitcoin has no future. So I wouldn't recommend investing in it, but as Russian digital assets enter the market, we expect a real spike in digital issuance. This year, among other things, assets protected by natural resources and the potential of companies.

Like cryptocurrencies, DFA is based on blockchain technology. However, unlike cryptocurrency, their operations are centralized. In Russia, the issuance of DFA is regulated by the Central Bank and companies must be registered as information system operators.

According to Ekaterina Frolovicheva, CEO of tokenization service Atomise, 2 billion rubles ($26 million) worth of TFA were issued in Russia last year. In January 2021, the TFA Act, which regulates their production and use in Russia, entered into force.