Russia's central bank proposes ban on cryptocurrencies, likens to pyramid scheme

Russia's central bank proposes banning the use and mining of cryptocurrencies in Russia, saying it threatens financial stability, retail investors, and its monetary policy sovereignty. In a report published on Thursday, the Bank of Russia said the crypto market has "signs of a financial pyramid as increase in their prices is largely driven by demand demonstrated by new market participants." The report also said crypto mining "creates unproductive consumption of electric power," threatening the power supply of residential buildings, social infrastructure, and enterprises. In its argument against the use of crypto for payments, the central bank said cryptocurrencies are "extensively used in illegal activities," like money laundering, drug trafficking, and terrorist financing. Bitcoin (BTC-USD) is little changed, recently trading at ~$42K. Ether (ETH-USD) trading at $3.13K. Cardano (ADA-USD) drops 6.0%. In December, Reuters reported that the Bank of Russia was seeking to ban crypto investments because of its risks to financial