Russian President Vladimir Putin has spoken out on the topic of Bitcoin mining in Russia, saying the industry risks consuming too much of the country's electricity supply.
Putin's position on cryptocurrency mining
Russia is one of the most important countries in terms of crypto mining, especially Bitcoin. Indeed, its cheap electricity and cold climate are clear assets in this industry.
Although Russia appears to be banking on the growing cryptocurrency sector with upcoming regulation, President Vladimir Putin spoke out Wednesday, taking a more moderate stance on mining.
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He warned against cryptocurrency mining in Russia, saying it risked consuming too much of the country's electricity supply and leading to power shortages in the region. :
What we need to pay attention to here, and what is alarming, is that the uncontrolled growth of electricity consumption for cryptocurrency mining can lead to electricity deficits in some regions.
Vladimir Putin also said that 3 Siberian regions have already experienced electricity shortages due to intensive crypto mining. Indeed, according to Vladimir Putin, cryptocurrency mining would represent “ almost 1.5% of the country's total electricity consumption ” And ” This figure continues to grow “.
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What future for the mining industry in Russia?
The Russian president did not specify how his government should address the issue, or whether he would propose restrictions on crypto mining. He did, however, state that ” timely decisions » had to be taken.
Alongside these recent statements, Russian lawmakers will next week discuss a landmark bill on regulating cryptocurrencies in the country. The bill would limit large-scale crypto mining to licensed companies and allow the government to ban mining in certain regions based on energy constraints.
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Although Vladimir Putin's recent statements regarding the mining industry may be seen as a brake on the adoption of cryptocurrencies in Russia, they go in the direction of clearer regulation for the players operating in this sector.
Indeed, since crypto mining occupies a significant place in the Russian economy, it is important to define an unambiguous framework for it. Moreover, Russia has a particular interest in legislating on stablecoins in order to circumvent the exclusion from the SWIFT system and economic sanctions.
Vladimir Putin also said on Wednesday that the rollout of a digital ruble, an official digital currency backed by the country's central bank (MNBC), should be accelerated.
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Source: Barron's
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide a weekly fundamental analysis.
Theo Zananiri
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