Bank of Russia Governor Calls Bitcoin a "Technological Financial Pyramid"

First Deputy Governor of the Bank of Russia Sergey Shvetsov likened buying bitcoin to "entering a minefield" in an interview released on the Central Bank's official website Wednesday.

Shvetsov went on to describe alternative financial instruments such as Bitcoin as "technological financial pyramids," adding that there is "no need to walk where you are not protected by the Russian federation." This is despite recent polls suggesting that Russian's trust in government institutions is waning. 

The statements also come less than a month after the First Deputy Governor asked that Russian stock exchanges not list companies whose businesses are affiliated with cryptocurrencies to non-accredited investors.

Meanwhile, Bitcoin adoption is growing rapidly in the country. A recent report by The World Gold Council showed cryptocurrencies now being fifth largest investment vehicle in Russia, passing gold in total volume.

This suggests local investors are taking the Bitcoin as a hedge against inflation narrative seriously, as they look to protect themselves against growing monetary devaluation. Elvira Nablullina, also a Governor of the Bank of Russia, warned last month that strong inflationary pressures within the country were "here to stay." 

Russia is not the only country lashing out against Bitcoin in recent months. China, Europe and even the United States have all taken recent actions to flex regulatory muscle against the fast growing digital asset. 

Despite this, Bitcoin adoption does not appear to be slowing, as new users continues to reach all time highs. This trend is likely to accelerate as inflation is expected to continue rising throughout the world.