Russian economist Valentin Katasonov has warned that national Bitcoin reserves could be a “ticking time bomb,” predicting a potential 50% crash in Bitcoin amid rising market volatility.
He cautions that the risks associated with cryptocurrencies could destabilize economies if mishandled.
Katasonov Criticizes National Bitcoin Reserves
Katasonov, Chairman of the S. F. Sharapov Russian Economic Society, strongly opposes Russia developing Bitcoin reserves. He likened the move to “laying landmines” in the economy, which could trigger market risks. Katasonov views discussions about crypto reserves as a way to inflate economic bubbles, with potential negative consequences if they burst.
Bitcoin Reserves Seen as Threat to Economic Security
The economist has also criticized advocates for Bitcoin reserves, calling them “fifth columnists” undermining Russia’s economic security. This sentiment reflects growing concerns about the volatility of the crypto market within Russian economic circles.
Russian Central Bank’s Stance
The Russian Central Bank has ruled out the creation of Bitcoin reserves, and the finance ministry continues to focus on gold and Chinese yuan purchases. However, if Russia’s National Welfare Fund reaches 7-10% of GDP, the government may consider riskier assets, including cryptocurrencies.
Despite the concerns, some Russian lawmakers remain interested in acquiring Bitcoin to maintain leadership in the crypto space. Russian Finance Minister Anton Siluanov emphasized that lower-risk investments ensure stability but limit returns, balancing the country’s economic resilience.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/russian-economist-warns-of-50-bitcoin-crash-amid-market-volatility-concerns/