Speaking in the National Assembly, Central Bank Governor Martin Galstyan said that crypto assets pose serious risks, including potential use in financing shadow or illegal operations. He made the remarks in response to a question from Civil Contract MP Arman Yeghoyan, Sputnik Armenia reports.
Yeghoyan had asked whether the Central Bank trusts cryptocurrencies and what future it envisions for them in Armenia. Galstyan reminded lawmakers that under the crypto law adopted by parliament, the CB has been tasked with developing a regulatory framework to govern the activities of actors dealing in crypto.
“There is a misconception that terms like crypto, assets, innovation, artificial intelligence all mix together in one basket, when in reality they are different phenomena requiring different approaches. I believe we should be neither overly optimistic nor overly pessimistic, but pragmatic — understanding how to manage them so that innovation goes hand-in-hand with mechanisms for mitigating risks,” Galstyan said.
He stressed that the Central Bank operates at the institutional level, not with individuals. Relations between individuals, companies, and finance remain the responsibility of commercial banks.
Asked whether banks would work with citizens holding crypto assets, Galstyan said it depends on each bank’s risk tolerance and the client’s ability to explain the origin of those assets.
“If crypto flows into the banking system and we have no idea where it came from — for instance, whether it was generated by missile sales in Syria or child organ trafficking in Ukraine — then how can a bank take on that risk?” Galstyan underlined.
He concluded that the banking system must learn to manage such risks with rational methods, making crypto services more accessible and viable in the future.
Earlier, Prime Minister Nikol Pashinyan quipped: “Only in our country can you see a box on the sidewalk selling cryptocurrency.”
