Sberbank and VTB, Russia’s two biggest banks, are unwilling to enter the cryptocurrency market in the near future because their CEOs believe crypto is either too risky or fake money.
Sberbank CEO Herman Gref said cryptocurrencies like Bitcoin (BTC) are probably the riskiest type of investment alongside the stock market. In an interview Thursday with local TV station NTV, Gref claims that a bank deposit is the best investment option because it is associated with less risk despite low returns:
“A bank deposit is certainly the most reliable investment instrument. 100% reliability but unfortunately not very high profitability.
Andrey Kostin, CEO of VTB – Russia’s second largest bank – went even further, claiming that crypto is “fake money.” In an interview with Bloomberg on Friday, Kostin mentionned:
“We don’t like Bitcoin. We think it’s like making counterfeit money. Someone sits somewhere in mining and mining like in the Middle Ages and then uses them.
Kostin expressed confidence that the central bank’s digital currencies will replace crypto, saying private banks were initially “a little concerned” about giving all power over money to the Bank of Russia.
“The banks were a little worried that the central bank would take their business, but I think we have found the solution whereby customers will stay with the banks while the cryptocurrency is controlled and issued by a central bank,” he said. -he declares.
It is perhaps not surprising that the aforementioned CEOs do not support private digital currencies, as the Russian government – itself not a big supporter of cryptocurrencies – has controlling stakes in Sberbank and VTB.
Yesterday Oliver Hughes – the CEO of private digital bank Tinkoff – announced that the Bank of Russia would not let it launch crypto services despite customer demand.