Russian President Vladimir Putin Warns That Crypto Mining Could Lead to Significant Power Shortages in Some Regions of the Country While Calling for an Expansion of Its Central Bank Digital Currency (
- WBOYOriginal
- 2024-07-18 15:04:18538browse
Putin said that Bitcoin and other crypto mining facilities' uncontrolled electricity consumption is already causing power shortage issues in several areas
Russian President Vladimir Putin has called for an expansion of the country’s central bank digital currency (CBDC), while warning that crypto mining is causing significant power shortages in some regions.
During a government meeting on July 17, Putin highlighted the issue of crypto mining facilities’ uncontrolled electricity consumption, which he said is already causing power shortage problems in several areas.
“In the Irkutsk Region, Buryatia, and the Trans-Baikal Territory, the situation is acute and fraught with serious consequences for enterprises, residential areas, and social facilities,” he said, regarding the potential halting of investment and infrastructure projects.
According to Putin, crypto mining in Russia uses 16 billion kilowatt-hours (kWh) annually, which is around 1.5% of the country’s total electrical consumption. He added that this usage is increasing.
“The low price of electricity and the ease of moving mining equipment quickly led to an increase in the volume of crypto mining in Russia,” Putin noted, regarding the growth in crypto mining activity.
He added that instructions have been given for federal mining legislation, including taxation and tariffs.
On July 17, Agence France-Presse reported that Russian lawmakers are set to discuss draft legislation that permits only approved companies to engage in large crypto-mining operations, while allowing the government to ban mining in regions with energy shortages.
One week earlier, Russian newspaper Kommersant reported that the State Duma Committee on the Financial Market has approved a draft bill to decriminalize crypto mining in Russia while banning crypto from circulation.
Russia's current laws reportedly ban crypto settlements but not circulation.CBDC post-pilot to be expandedDuring the latest hearing, Putin also called for the country to move to a “wider, full-scale implementation” of its CBDC, known as the digital rouble.
He noted that the digital rouble pilot has seen over 27,000 transfers and 7,000 payments for goods and services, which he said demonstrates the asset's “performance and functionality.” Participation includes 12 banks, 600 individuals, and 22 trade and service enterprises across 11 cities, he added.
In an earlier June report, Chairman of the Russian State Duma’s Financial Markets Committee Anatoly Aksakov said that Russia could begin using its digital rouble domestically in the second half of 2025 following testing for domestic transactions.
The Bank of Russia launched the pilot program in August 2023.
The above is the detailed content of Russian President Vladimir Putin Warns That Crypto Mining Could Lead to Significant Power Shortages in Some Regions of the Country While Calling for an Expansion of Its Central Bank Digital Currency (. For more information, please follow other related articles on the PHP Chinese website!