Crypto mining is advantageous in Russia, Putin’s analysis

Vladimir Putin, President of Russia has given hope to crypto enthusiasts who have been in a threat of banning cryptocurrencies and mining regarding digital assets’ future in the country. In a video conference on 26th Jan 2022, Putin with the members of the Russian Government said that he would like to “start with an issue that is currently in the spotlight — the regulation of Cryptocurrencies.”

“Of course, we also have certain competitive advantages here, especially in the so-called mining. I mean the surplus of electricity and the well-trained personnel available in the country.”

The household electricity price in Russia was $0.06 per kilowatt-hour and for business use, it was $0.08, in accordance with analysts in spring 2021 whereas the electricity price in France is 4 times more costly as compared to Russia which is $0.14 per kilowatt-hour for business and $0.2 per kilowatt-hour for household use.

In the future, Putin called on the Central Bank of the country to meet with his government so that they might come to an agreement for the use of crypto. Last Thursday, Russia’s Central Bank reported for a blanket ban on mining and domestic crypto trading. According to the reports “much higher for emerging markets, including Russia.” 

Elvira Nabiullina, the governor of the Central Bank of Russia, in Dec 2021 stated “We can not welcome investments into cryptocurrencies.”

Ivan Chebeskov, Russian Finance minister responded yesterday in opposition to the blanket ban proposal, calling for regulation rather than restriction. He also stated that the crypto ban will lead the country backward in terms of the worldwide tech industry.

“We need to give these technologies the opportunity to develop.”

For the present composed his parliament members that “the Central Bank does not stand in our way of technical progress and is making the necessary efforts to introduce the latest technologies in this area of activity.”

Other than these promises Putin also acknowledged that more use of crypto “carries more risks,” given its “high volatility.”