While speaking at the FINOPOLIS innovative financial technology forum, Elvira Nabiullina, the Governor of the Russian central bank, stated that the level of enthusiasm and excitement of investors towards the cryptocurrency sector might have just cooled down.
Has Cryptocurrency Fever Cooled?
The failure of many crypto initiatives including ICOs has been the reason for the reduction in the level of excitement in investors. This was the position of the popular Russian economist and the erstwhile economic advisor to President Vladimir Putin of Russia while representing businesses point of view to the bearish crypto market.
Though roughly translated Elvira Nabiullina was of the opinion that; “We are holding the FINOPOLIS forum for the fourth time. Earlier, this event used to witness a cryptocurrency fever everywhere. But now, it is visibly beginning to disappear,” he further stated that;
“Back in old times, technologies like blockchain caused a great deal of enthusiasm, but, in our opinion, now a more sober attitude towards such technologies has begun.”
Russian Investors Now Sober?
The executive officer of apex bank’s statement came in the wake of crypto and blockchain growth in the country. The Russian President had earlier raised the hope of having a well-structured regulatory framework for the emerging blockchain economy amidst the pressure of US imposed sanction, which has continued to grow. However, it appears that the recognition of Bitcoin (BTC), as well as other cryptocurrencies, is not coming anytime soon.
Despite this, Russian investors have decided to remain quiet as regards the outcomes of blockchain tech as well as cryptocurrency. Nabiullina expressed her optimism in the emerging sector, making reference to the aftermath of 2018’s bearish market. She was of the opinion that this would help businesses as well as improve their decisions as a corporate body in picking practical projects over sensational ones. She explained saying; “Business is trying to improve such technologies, looking for cases for the practical application of them.”
ICOs: Method of Funds Raising
Interestingly, Nabiullina recognized Initial Coin Offering (ICO) as an effective method of fundraising, laying emphasis on the fact that it has proven relatively suitable compared to other fundraising methods. However, she pointed fingers at the earliest ICOs which were mostly fraudulent and amounted to scams. The positions of Nabiullina as regards crypto assets and that of Russian central bank’s attitude towards ICOs are in sharp contrast.
Flashback to last year, the famed Russian economist compared the crypto fever as being like the gold fever. Later she expressed a lack of interest in crypto regulation or making crypto have the same status as foreign currencies.