Household investments in Russian instruments related to cryptocurrencies total around 3.7 bln rubles - Central Bank

MOSCOW. Nov 27 (Interfax) - Household investments in Russian instruments related to digital currencies total about 3.7 billion rubles and do not pose systemic risks, according to the Financial Stability Review of the Central Bank of Russia for the second and third quarters.

Part of the funds are invested in Russian bonds whose yield is linked to the value of digital currencies. Their issuance became possible in May of this year.

The volume of investments by citizens and non-profit organizations serving the population in these bonds totaled 1.6 billion rubles at the beginning of October. The volume of bonds in circulation at face value is only 2.9 billion rubles.

Investments by individuals in futures contracts on digital currencies on the Moscow Exchange are also minimal, the Central Bank said, with the overall net position totaling 2.1 billion rubles at the beginning of October.

The majority of investors, 1,900 people, trading futures contracts on digital currencies, form small portfolios of up to 500,000 rubles. However, the key contribution to the total volume of investments is made by a small number of large players, whose open position volume amounts to 100 million rubles or more, according to the review.

The Central Bank in March announced that it had sent a proposal to the government to allow transactions with cryptocurrencies within an experimental legal regime (ELR) for the category of "highly qualified" investors. In its letter, the regulator also proposed allowing all qualified investors outside the ELR to invest in settlement derivative financial instruments, securities, and digital financial assets that do not involve the delivery of cryptocurrency to investors, but whose profitability is tied to its value.

Central Bank Governor Elvira Nabiullina in October said that the regulation of cryptocurrency transactions would be introduced directly, without an ELR, and that the Central Bank is ready to consider allowing qualified investors to trade, but with testing for knowledge of the risks associated with investing in cryptocurrencies. The Finance Ministry supports this initiative, Deputy Finance Minister Ivan Chebeskov said.