The National Bank of Kyrgyzstan once again appealed to the citizens of the country with a call to refrain from investing and using cryptocurrencies due to “possible risks”.
In his statement The Kyrgyz regulator has acknowledged a significant spread of virtual assets in the Republic. At the same time, the Central Bank emphasized that only soms can be used for payments in the country, and the use of digital assets for payments violates the legislation of Kyrgyzstan.
As the main risks of cryptocurrencies, officials called their lack of collateral in real assets. In addition, digital assets are dangerous due to the lack of supervisory and regulatory bodies that should monitor the circulation of such assets. Officials also noted the high volatility of cryptocurrencies:
“The lack of real value of cryptocurrencies due to the fact that they are usually not linked to any currency or other asset creates high risks of exchange rate volatility and loss of value.”
Earlier, the Kyrgyz regulator has already warned citizens about the dangers of investing in cryptocurrencies. At the end of March, a local deputy called on the government to work on the issue of creating its own national digital currency.
Source: Bits
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