Cryptocurrencies, for ARCA you can't use them as money

Cryptocurrencies, for ARCA you can't use them as money. A new "Russian" rejection comes from the country's rating agency.

Le Cryptocurrencies are not yet usable as money, concludes the Russian rating agency Analytic Credit Rating Agency (ARCA), in a dossier published last June 7, which states that the digital currency is not yet usable as a means of payment.

According to ARCA, in fact, the cryptocurrency "currently it does not perform any of the functions of money”Because the exchange rate volatility is too high - comparable to the volatility of food prices - to allow it to be efficient as a payment.

The report also notes that the use of encryption "it still does not reduce transaction costs in the economy"Due to its" energy inefficiency [...], the lack of economies of scale in the provision of cybersecurity [and] the low speed of the registry [blockchain]. All these factors reduce the value of the potential advantage. "

ARCA then carries out a comparison between cryptocurrency e legal currencies, and argues that the market value of the cryptocurrency is "formed primarily by the expectations of investors' willingness to sell assets in the future at a higher price". Factors that could increase the use of cryptocurrency, according to ARCA, include "the tightening of sanctions against the background of a favorable foreign policy and external economic tensions".

We recall that a few days ago, during his annual question and answer session with citizens, President Putin exposed himself in a substantially negative way towards the cryptocurrency. However, Putin also specified that Russia intends to examine how to use cryptocurrency to "avoid any restrictions in the field of international financial activities", and that it could have been a reference to avoid the western sanctions currently imposed on the country.

The ARCA report concludes that the use of cryptocurrency in the future of Russia is unlikely to spread due to the local central bank's fairly harsh approach to regulation, high investment risks, the inadequate number of companies ready to accept payment for their cryptocurrency goods and services, and the lack of guarantees for the safety of funds compared to traditional money.