Putin Asks to Control Cryptocurrency Mining Due to Its High Energy Consumption
Engineers inspect cryptocurrency mining rigs in Nadvoitsy, Russia, 2021. Photo: X/ @jsunbury
July 17, 2024 Hour: 8:03 am
Energy consumption amounts to 16 billion kilowatt-hours annually, almost 1.5 percent of the consumption in Russia.
On Wednesday, Russian President Vladimir Putin called for legislative measures to control cryptocurrency mining, which, due to its high energy consumption, can cause power supply failures in the civilian sector and Russian industry and hinder investment projects.
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“We need to make correct and timely decisions, including systemic ones, at the level of federal laws,” he said in a meeting with the Russian government dedicated to digital currencies and cryptocurrencies.
Cryptocurrencies are not monetary units in the usual sense, but they are increasingly used worldwide as a means of payment in international transactions.
“Their production, or as it is also known, the mining of these currencies, can be carried out practically anywhere on the planet, but it requires a large amount of electrical energy,” Putin said.
“Energy consumption amounts to 16 billion kilowatt-hours annually, almost 1.5 percent of the total electricity consumption in the country. And this figure continues to grow,” he warned.
“The rise of cryptocurrencies is due to factors such as the relatively low electricity prices in our country and the mobility of cryptocurrency mining equipment. But what should draw our attention and put us on alert is that the uncontrolled growth of electricity consumption for cryptocurrency production can cause a deficit in the power production capacity of some regions,” he warned, citing problems in Irkutsk and Buryatia.
“This is an issue that can have serious consequences for the public utility companies in some regions. If there are no available energy capacities, if they are occupied by mining farms, then new businesses, residential areas, and social entities will face supply failures, lack of electricity, and future investment projects will be hindered,” Putin asserted.
In contrast, he highlighted the development of the digital ruble, an initiative promoted and tested by the Central Bank of Russia, and called for “moving towards its increasingly widespread and large-scale use in the economy, administrative activities, and the financial sector.”
Putin referred to the pilot project launched by the Russian Central Bank in August of last year for the use of the digital ruble, in which “12 banks, 600 individuals, and 22 trade and service companies from 11 Russian cities participated.”
“As of July 1, more than 27,000 transfers and over 7,000 payments for goods and services had been made,” he said, noting that this platform demonstrated its workability and functionality. Therefore, he called on the government to study this issue in detail and consider a broader use of the digital ruble.
Autor: teleSUR/ JF
Fuente: EFE
