BRICS: Russia Issues Crypto Mining Warning

BRICS and Russia in particular has raised concerns about the impact of cryptocurrency mining on power infrastructure, emphasizing the need for stricter regulations.

Russian President Vladimir Putin warned that unregulated crypto mining could lead to power shortages and blackouts. He stressed that the surge in electricity consumption from mining activities is putting a strain on Russia’s power grids.

Putin noted that crypto mining currently consumes about 16 billion kilowatt-hours per year in Russia, accounting for roughly 1.5% of the nation’s total electricity usage. This consumption is expected to increase without regulatory measures.

Despite Russia’s strict cryptocurrency laws, which permit digital assets but ban their use for payments, mining remains widespread due to low electricity costs and accessible equipment. Russia ranks second globally in crypto mining, following the United States.

READ MORE:

Crypto Platform Expands BTC and ETH Options Ahead of 2024 US Election

Authorities are concerned that mining operations could disrupt power supplies to new businesses and residential areas, potentially stalling investment and infrastructure projects. Putin has called for tax and tariff regulations on miners and urged the creation of a federal law to address these challenges.

BRICS is exploring the integration of cryptocurrencies and digital assets into their financial systems, viewing them as potential tools for developing a new currency to reduce dependence on the US Dollar. However, they also aim to regulate the use and mining of crypto to prevent the power disruptions that Russia foresees.

Alexander Stefanov