Russian President Sees Potentials In Cryptocurrency Mining
Russian President Vladimir Putin, says that there are lots of potentials in the digital currency mining sector, despite agreeing with the Bank of Russian that they pose threats to the country’s economy. Putin says that virtual currency mining could give the country a competitive edge.
The Bank of Russia’s tough stance on cryptos is no news. The Apex bank continually condemned crypto transactions, warning its citizens of the danger in trading this asset class. Last week, the financial regulator proposed a blanket ban on this nascent asset class.
By blanket ban, the BoR means a total ban should be implemented, a similar thing that China did in September. The BoR compared virtual currencies to a pyramid scheme, adding that digital assets threaten the traditional financial infrastructure and the power of fiat currency.
Putin Okays Crypto Mining, But Not Virtual Currencies
Speaking at a conference, Putin said that while he is aware of the ongoing regulations on virtual currencies, he thinks the country will benefit immensely from crypto mining, given the country’s surplus electricity and expertly-trained personnel. This activity will put the country in a strategic position in the global map.
Agreeing with the top bank, Putin disclosed that virtual currencies pose risks to retail and institutional investors due to their increased volatility. However, the president has made his stance known on crypto mining. Putin opines that the BoR should meet with other concerned agencies to sit down and talk about the issue of regulating cryptos and agree unanimously.
This news comes after a stakeholder, Ivan Chebeskov, disagreed with BoR on the proposition of blanket ban on cryptos, giving reasons for his strong stance. Chebeskov revealed that prohibiting virtual currencies will retrogress Russia and push the country down the ladder in blockchain tech. Therefore, he urged the government to provide regulations and not prohibit the use of cryptocurrency entirely.
Recall that Russia became one of the major mining hubs, as several miners ran to the country in the aftermath of China’s heavy clampdown on miners. The country became the third-largest based on BTC hash rate with 14%. The United States leads based on overall production output based on a statistic from Cambridge’s mining data.
Mining Should Be Official, Says Energy Ministry
Last year, the Energy Ministry alongside the Ministry of Economic Development called on the legalization of cryptocurrency mining. One of the Executives Aleksey Minaev opined that legalizing mining could bring in some revenue for the country. Finally, he said that the novel sector deserved some respect.
Presently, mining this digital asset class in Russia isn’t prohibited, but lacks foresights. Duma’s head of state Anatoly Aksakov, pleaded with the oversight watchdogs to provide more clarity on regulations and charge miners higher than the regular consumer due to more consumption.
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