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Vladimir Putin ordered: We are short of electricity, stop "mining" cryptocurrency

During the government meeting, Putin also said that he wants to introduce the digital ruble on a large scale into the economy after several months of testing

Jul 17, 2024 21:06 144

Vladimir Putin ordered: We are short of electricity, stop "mining" cryptocurrency  - 1

Russian President Vladimir Putin warned today , that the consumption of electricity in the country for the purpose of "mining" of cryptocurrencies has "gone out of control" and must be limited, reported France Press, quoted by BTA.

Next week, Russian MPs must vote on the bill to regulate the sector.

Russia, along with the USA and Kazakhstan, are the leading countries in the world in terms of "mining" of cryptocurrencies - an activity that consists of performing a long series of calculations and requires a large amount of electricity.

"Uncontrolled growth in electricity consumption for cryptocurrency mining may lead to power shortages in some regions," Putin said during a government meeting on the topic. "This is already being observed in the regions of Irkutsk, Buryatia and Transbaikalia", he also pointed out and defined the problem as "acute and serious". for certain companies and cities.

In the words of the Russian president, "nearly 1.5 percent of electricity in Russia" is used every year for "mining", and "this volume continues to grow".

Deputies in the Duma, the lower house of the Russian parliament, are due to consider a bill to regulate cryptocurrencies on July 23. According to the draft document, parts of which were leaked to the Russian press, it is envisaged that the circulation of cryptocurrencies in the country will be limited "to prevent money laundering".

It is envisaged that only certain people or companies registered in a special register maintained by the authorities will be allowed to carry out cryptocurrency operations, and the government will reserve the right to prohibit any "mining" in a given region in case of too much pressure on the power grid.

During the government meeting, Putin also said that he wants to "introduce the digital ruble on a large scale" in the economy after several months of testing. This digital currency, issued directly by the Russian Central Bank, is seen by observers as one of Moscow's alternatives to the SWIFT global payment system and could facilitate Russian transactions abroad.