According to Russia’s Ministry of Industry, local cryptocurrency enterprises consume more than 2% of the total electricity volume in the nation. The lawmakers are concerned that this exceeds some sectors like agriculture. As such, it needs to be “whitewashed” and put under the government’s supervision.
In a recent speech, Vasily Shpak – Deputy Head of the Ministry of Industry of Russia – reminded that domestic cryptocurrency mining falls into the economy’s “gray zone” since it is not taxed and not regulated by the authorities. He argued that unless “whitewashed,” this activity could pose risks:
“Here, our position is completely unambiguous: mining must be recognized, regulated, and built into an industrial activity.”
Despite predicting that crypto-mining could use less electricity in the near future, Shpak outlined its current status. According to the Ministry’s estimations, the sector consumes over 2% of Russia’s total energy consumption.
What’s more, digital asset mining’s share surpasses that of agriculture. The latter is a vital niche for the nation as arable land encompasses 7% of its territory. Russian fields produce over 10% of the world’s total grain exports and 23% of global wheat exports.
“Do you know how much mining accounts for in the overall map of electricity generation in our country? And I’ll tell you: more than 2%. This is more than the cost of electricity for agriculture,” Shpak stated.
It is worth noting that Russia is a top participant in the cryptocurrency mining map. A study conducted by the Cambridge Center for Alternative Finance estimated that the country accounts for over 11% of the global hashrate. First is the USA, while Kazakhstan ranks second.
The cryptocurrency mining sector has a rather good chance to remain a vital part of Russia’s ecosystem since President Vladimir Putin is also supposedly in favor of it. Several months ago, he said it could be beneficial to his nation:
“Although, 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 Ministry of Economic Development, the Ministry of Energy, and the State Duma also spoke highly of crypto mining. Last year, they insisted it become a legalized business while miners should be treated as entrepreneurs.
