Russian President Vladimir Putin warns of potential power shortages due to crypto mining in various regions of the country. He advocates for the expansion of Russia’s central bank digital currency, the digital rouble, during a meeting on July 17.
Putin highlights the uncontrolled electricity consumption by Bitcoin and other crypto mining facilities, causing power shortage issues in places like the Irkutsk region and Buryatia. He emphasizes the seriousness of the problem, which could negatively impact businesses, residential areas, and infrastructure projects.
The Russian leader reveals that crypto mining in the country uses 16 billion kilowatt-hours (kWh) annually, equivalent to 1.5% of the total electricity consumption. He attributes this rise to low electricity prices and the ease of relocating mining equipment, proposing federal legislation on taxation and tariffs.
Russian lawmakers are set to review draft legislation allowing approved companies to conduct large-scale crypto mining operations, with provisions to restrict mining in energy-deficient regions.
Furthermore, plans are underway to decriminalize crypto mining while prohibiting crypto circulation in Russia. Despite existing laws forbidding crypto settlements, circulation remains legal.
Expanding the Digital Rouble
Putin advocates for a broader implementation of Russia’s CBDC, the digital rouble, following a successful pilot phase. The digital currency has facilitated thousands of transfers and payments for goods and services, showing promising performance and functionality.
Chairman Anatoly Aksakov of the Russian State Duma’s Financial Markets Committee suggests that Russia could start using the digital rouble domestically by the latter half of 2025. The central bank initiated the pilot program in August 2023.
**Meta Description:** Russian President Putin warns of power shortages from crypto mining and pushes for the expansion of the digital rouble. Legislation and plans for CBDC implementation are in progress.
**Focus Keywords:** Putin, crypto mining, power shortages, digital rouble, CBDC, Russia
**H1:** Russian President Putin Warns of Power Shortages Due to Crypto Mining
**H2:** Impact of Crypto Mining on Power Supply in Russia, Expansion of the Digital Rouble, Legislative Changes for Crypto Mining Operations
