Vladimir Putin Says Crypto Mining Has Advantages In Russia

Vladimir Putin, Russian President has given crypto fans reason to be optimistic about the future of digital assets in Russia, which has been threatened by a recent campaign to outlaw cryptocurrency and mining.

The strongman leader began a video conference with officials of the Russian government on Jan. 26 by stating he’d want to “start with a subject that is currently in the spotlight – cryptocurrency regulation.”

“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.”

iexclusivenews gathered that according to estimates, the price of electricity in Russia in spring 2021 was $0.06 per kilowatt-hour for residential usage and $0.08 for commercial use.

To put it in perspective, a kWh of electricity in France costs $0.2 for residents and $0.14 for businesses, which is four times more expensive than in Russia.

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He also requested that the country’s Central Bank meet with his government in the near future to reach an agreement on the use of cryptocurrency.

Russia’s central bank published a paper last Thursday proposing a total ban on cryptocurrency trading and mining within the country.

The risks of cryptocurrency are “far higher for emerging markets, particularly Russia,” according to the research.

Russia’s Central Bank has long been concerned about cryptocurrency.

Elvira Nabiullina, governor of the Central Bank of Russia, stated in December 2021, “We cannot welcome investments in cryptocurrencies.”

Russian Finance Minister Ivan Chebeskov yesterday reacted angrily to the proposed blanket ban, urging regulation rather than restriction. He emphasized that a crypto ban would cause the country to fall behind in the global tech industry.

“We need to give these technologies a chance to mature.”

However, Putin assured his lawmakers 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.”

Despite these assurances, Putin admitted that increasing the use of cryptocurrency “carries certain risks” due to its “high volatility.”

While Russia’s central bank has been skeptical of cryptocurrency for some time, Putin’s position has been somewhat ambiguous. He stated in November 2021 that cryptocurrency is “not backed by anything, [and] the volatility is colossal.”

Telegram CEO Pavel Durov recently wrote on his messaging platform that the proposed crypto ban would “destroy a number of sectors of the high-tech economy.”