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Russian President Vladimir Putin warned 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 (CBDC), the digital rouble, in a July 17 meeting.
Putin said that Bitcoin and other crypto mining facilities’ uncontrolled electricity consumption is already causing power shortage issues in several areas, including the Irkutsk region, Buryatia, and Trans-Baikal Territory.
He called the issue “acute and fraught with serious consequences” to enterprises, residential areas, and social facilities, potentially halting investment and infrastructure projects.
Putin noted that crypto mining in Russia uses 16 billion kilowatt-hours (kWh) annually, or 1.5% of the country’s total electrical consumption, and said usage is rising. He attributed the growth to Russia’s low electricity prices and the ease of moving mining equipment.
He described instructions for federal mining legislation, including taxation and tariffs.
On July 17, Agence France-Presse said 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 said the State Duma Committee on the Financial Market 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.
During the latest hearing, Putin also said that the country must move to a “wider, full-scale implementation” of its CBDC, the digital rouble.
He said the country’s digital rouble pilot has achieved over 27,000 transfers and 7,000 payments for goods and services, demonstrating the asset’s “performance and functionality.” He reported participation from 12 banks, 600 individuals, and 22 trade and service enterprises across 11 cities.
In an earlier June report, Chairman of the Russian State Duma’s Financial Markets Committee Anatoly Aksakov said Russia could begin using its digital rouble domestically in the second half of 2025 following testing for domestic transactions.
Russia’s central bank launched the pilot program in August 2023.
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Putin said that Bitcoin and other crypto mining facilities’ uncontrolled electricity consumption is already causing power shortage issues in several areas, including the Irkutsk region, Buryatia, and Trans-Baikal Territory.
He called the issue “acute and fraught with serious consequences” to enterprises, residential areas, and social facilities, potentially halting investment and infrastructure projects.
Putin noted that crypto mining in Russia uses 16 billion kilowatt-hours (kWh) annually, or 1.5% of the country’s total electrical consumption, and said usage is rising. He attributed the growth to Russia’s low electricity prices and the ease of moving mining equipment.
He described instructions for federal mining legislation, including taxation and tariffs.
On July 17, Agence France-Presse said 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 said the State Duma Committee on the Financial Market 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.
Extension of CBDC post-pilot
During the latest hearing, Putin also said that the country must move to a “wider, full-scale implementation” of its CBDC, the digital rouble.
He said the country’s digital rouble pilot has achieved over 27,000 transfers and 7,000 payments for goods and services, demonstrating the asset’s “performance and functionality.” He reported participation from 12 banks, 600 individuals, and 22 trade and service enterprises across 11 cities.
In an earlier June report, Chairman of the Russian State Duma’s Financial Markets Committee Anatoly Aksakov said Russia could begin using its digital rouble domestically in the second half of 2025 following testing for domestic transactions.
Russia’s central bank launched the pilot program in August 2023.
Source link
The post Putin warns of power shortages from Bitcoin mining, calls for expansion of CBDC appeared first on Panther AI.
Continue reading...