Russian President Vladimir Putin expressed concerns on Wednesday about the impact of cryptocurrency mining on Russia's electricity supply, noting that it could lead to regional power shortages. Russia is a major player in the global cryptocurrency mining industry, where large numbers of computers housed in facilities validate transactions in exchange for new cryptocurrencies. However, the Kremlin views this unregulated sector with skepticism, and a new law is in the process of being passed to increase government oversight.
Putin highlighted that cryptocurrency mining currently consumes 'almost 1.5 per cent of the total electricity consumption in the country,' a figure that is continuously rising. During a televised government meeting, he emphasized the need to address the uncontrolled increase in electricity usage for mining, which could result in power deficits in various regions. He mentioned that three Siberian regions have already experienced power shortages due to intensive mining activities.
Although Putin did not specify how Russia should tackle this issue or whether he supports restrictions on mining, he stressed the importance of making 'timely decisions.' Russian legislators are set to discuss a key bill next week aimed at regulating cryptocurrency mining, which includes restricting large-scale operations to certified companies and allowing the government to prohibit mining in regions where energy supplies are under strain. Despite the favorable conditions of cheap electricity and cold weather in Siberia, which make it an attractive location for mining, the Russian government remains cautious about fully embracing the industry.
Additionally, Putin called for the acceleration of the 'digital ruble' project, a state-backed digital currency initiative by the Russian central bank.
